PANAMA CANAL TREATY
(DISPOSITION OF UNITED STATES TERRITORY)
HEARINGS
BEFORE THE
SUBCOMMITTEE ON SEPARATION OF POWEES
OF THE
COMMITTEE ON THE JUDICIARY
UNITED STATES SENATE
NINETY-FIFTH CONGRESS
SECOND SESSION
PART 4
MARCH 11, 1978
Printed for the use of the Committee on the Judiciary
U. S GoveiT.. . — '- ■^--osHory
FrciiJiim jpier^ . :y
APR G - 19^9
Boston Public Library
Boston, MA 02116
PANAMA CANAL TREATY
(DISPOSITION OF UNITED STATES TERRITORY)
HEARINGS
BEFORE THE
SUBCOMMITTEE ON SEPARATION OF POWEES
OF THE
COMMITTEE ON THE JUDICIARY
UNITED STATES SENATE
NINETY-FIFTH CONGEESS
SECOND SESSION
PART 4
MARCH 11, 1978
Printed for the use of the Committee on the Judiciary
U.S. GOVERNMENT PRINTING OFFICE
24-681 O WASHINGTON : 1978
For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402
COMMITTEE ON THE JUDICIARY
JAMES O. EASTLAND, Mississippi, Chairman
EDWARD M. KENNEDY, Massachusetts STROM THURMOND, Soutli Carolina
BIRCH BAYH, Indiana CHARLES McC. MATHIAS, Je., Maryland
ROBERT C. BYRD, West Virginia WILLIAM L. SCOTT, Virginia
JAMES ABOUREZK, South Dakota PAUL LAXALT, Nevada
JAMES B. ALLEN, Alabama ORRIN G. HATCH, Utah
JOSEPH R. BIDEN, Jr., Delaware MALCOLM WALLOP, Wyoming
JOHN C. CULVER, Iowa
HOWARD M. METZENBAUM, Ohio
DENNIS DeCONCINI, Arizona
PAUL G. HATFIELD, Montana
Francis C. Rosenberger, Chief Counsel and Staff Director
Subcommittee on Separation of Powers
JAMES B. ALLEN, Alabama, Chairman
ROBERT C. BYRD, West Virginia ORRIN G. HATCH, Utah
JAMES O. EASTLAND, Mississippi WILLIAM L. SCOTT, Virginia
QuENTiN Crommelin, Jr., Chief Counsel and Staff Director
Dr. James McClellan, Minority Counsel
Paul Guller, Editorial Director
Melinda Campbell, Chief Clerk
Ann Sauer, Assistant Clerk
Deirdre Hodchins, Research Assistant
(II)
CONTENTS
SATURDAY, MARCH 11, 1978
Witnesses
McClellan, Doris, clerk of the U.S. District Court for the Panama Canal PbR©
Zone 5
Luitweiler, James C, Secretary of the Joint United States-Republic of
Panama Land Commission 9
Statement
Helms, Hon. Jesse, a U.S. Senator from the State of North Carolina 7
Material Submitted for the Record
Final Report of the Joint Commission apiwinted by the President of the
United States of America and the President of the Republic of Panama,
under the provisions of articles VI and XV of the treaty ratified Feb-
ruary 26. 1904 17
Provisional Boundary Agreement (Davis-Arias Agreement) Informal pro-
visional delimitation of the boundaries of the Canal Zone. 1904 125
Staff rei>ort regarding proiierty records in the custody of the U.S. District
Court for the Di.strict of the Canal Zone 129
Representative sample of types of instruments of conveyance by which
the United States, as grantee, purcha.sed pi'oprietary land rights in the
Canal Zone 135
Act of Congress authorizing land conveyance to Masonic Lodge 145
Historical summary of Panama Canal Company 147
(III)
PANAMA CANAL TREATY
(DISPOSITION OF UNITED STATES TERRITORY)
PART 4
SATURDAY, MARCH 11, 1978
U.S. Senate,
Subcommittee on Separation of Powers,
Committee on the Judiciary,
W ashing ton. D.G.
The subcommittee met, pursuant to notice, at 10:15 a.m., in room
1318, Dirksen Senate Office Buildin*'-. Hon. James B. Allen of Ala-
bama (chairman of the subcommittee), presiding.
Present : Senator Orrin G. Hatch of Utah.
Also present : Senator Jesse Helms of North Carolina.
Staff present: Quentin Crommelin, Jr., chief counsel and statf di-
rector; Paul Guller, editorial director; and Deirdre Houchins, re-
search assistant.
OPENING STATEMENT OF CHAIRMAN ALLEN
Senator Allen. The Subcommittee on Separation of Powers of the
Committee on the Judiciary is convened today for the purpose of re-
ceiving the testimony of Doris INIcClellan, clerk of the U.S. court for
the Panama Canal Zone, and of James C. Luitweiler, formerly Sec-
retary of the Joint United States-liepublic of Panama Land Com-
mission. The committee is convened for the further purpose of acting
on the staff draft of the report of the subcommittee on the Canal
Zone property disposal issue, the main focus of the committee's work
during the past 8 months.
As has been constantly emphasized for some time now during the
Canal Treaty debate, the Constitution does very plainly require that
Congress authorize any disposal of property belonging to the United
States. Specifically, article IV, section 3, clause 2, of the Constitution
states as follows : "Congress shall have the power to dispose of * * *
the territory or other property belonging to the United States."
The recpiirements of this constitutional provision do not have any-
thing whatsoever to do with whether or not the United States is sov-
ereign within the Canal Zone or even whether the Canal Zone is unin-
corporated territory of the United States as the Federal courts have
consistently held. The issue is simply whether the United States owns
property in Panama. If property is owned by the United States, then
no disposal of such property to Panama can occur without the expi^ess
prior authorization of the Congress, including the House of Repre-
sentatives.
(1)
Earlier this morning one of the representatives of the radio net-
works asked me if this was a last ditch effort to defeat the Panama
Canal Treaties. I told the person no, that the committee has been in-
vestigating this point of constitutional law^ for the last 8 months. We
have the records of the hearings in three books and a committee report
as well.
I am glad that the anedia, at long last, is taking note of this im-
portant constitutional provision.
Not only has the Senate Subcommittee on the Separation of Powers
of the Judiciary Committee been going into this point, but also on the
House side one of those committees has been investigating this point.
It is happening not only in this Congress but happened in the last
Congress. So it is not a new issue. It is a most important issue as to
whether the House of Representatives will be allowed to participate in
and to vote on the disposition of property of the United States in
Panama.
The testimony which we will receive today and documentary evi-
dence which the subcommittee will examine should lay to rest forever
the idle and ill-informed recent assertions that the United States merely
rents its property in Panama. Nothing could be further from the truth.
Several able Senators in debate on the floor of the Senate, who
should have known better, have stated that the United States does not
own the property in the Panama Canal Zone but merely rents the prop-
erty. Well, we would like to disabuse them about that misconception of
the facts.
Not only is the Panama Canal Zone unincorporated territory of our
country, but additionally — and this is sufficient to trigger the require-
ments of the Constitution — the actual fee simple title to a major part
of the lands in the Canal Zone has directly vested in the United States
by purchase. That would be information to a number of Senators who
have participated in the debate on the floor of the U.S. Senate.
FEE SIMPLE TITLE TO ;5,598 TRACTS OF LAND
In other words, not only does the United States possess the Canal
Zone as owner of the territory, but additionally, the fee simple title to
the land itself has become public property as a result of our Govern-
ment's decision to buy up all private land holdings in the Canal Zone.
These pui-chases of private land rights occurred during the |)eriod
1905 through 1920, and by the date of the final report of the Joint
Land Commission on March 10, 1920, title to all former private land
holdings in the Panama Canal Zone had vested exclusively in the
United States.
In obtaining its title, the United States dealt with the owners of some
'3.598 tracts of land and did ultimately obtain full fee simple title
to all lands in the Canal Zone previously held by these Panamanians or
other private landowners. I might state that in the Treaty of 1903 this
land purchase commission was set up for the expressed purpose of al-
lowing the Ignited States to purchase the land in Panama in tJie
Canal Zone owned by private OAvners. These purchases were made at a
cost of at least $4,728,889 and possibly more.
Although the activities of the Joint Land Commission are obviously
a matter of record, the committee has nevertheless been greatly con-
cerned and, indeed, alanned that many otherwise responsible Govern-
ment officials seem to be under false impression that the United States
does not hold title to these lands in tlie zone. For that reason, the com-
mittee hopes that the testimony we are to receive today will establish
beyond a shadow of a doubt the fact that the United States does own
property in Panama and that Congress, therefore, must authorize any
transfer of these public lands to any foreign government or, indeed, to
any entity not part of the Government of the United States.
ORIGINAL DEEDS
In other words, the United States owns the fee simple title, and we
have three cartons containing the records and the original recorded
deeds to this property, I tliink this will lay the matter to rest.
This is public property belonging to all of the people of the United
States, and it cannot be legally given away except under authority of
the whole Congress representing all of the people of the United States.
It takes a statute enacted by both Houses of Congress. The Congress
and the people bought the land ; only the Congress and the people can
give it away.
HISTORICAL SPECULATION XOT NECESSARY
This principle of public property disposal is a matter of record, yet
there is a peculiar tendency of late to ignore the record and to ignore
the true facts of the history of the actions of tlie United States in
Panama. These revisionist historians — both in and out of govern-
ment— are handicapped by one significant fact. That fact is that many
of the people involved in this great national undertaking some 60 to 70
years past are still alive and possess memories unimpaired by the dream
world inhabited by many modern commentators.
Mr. J. C. Luitweiler has been, I am confident, bemused and possibly
annoyed by current accounts of the nature of the United States' ac-
tivities in Panama during the early days of the construction and opera-
tion of the canal. Mr, Luitweiler went to Panama as a young man in
February 1913, 65 years ago. He set sail witli Dr. Eowe and Dr. Faulk-
ner, both of whom had been appointed by President Wilson as Ameri-
can Commissioners on the Joint Land Commission. The two Pana-
manian Commissioners appointed by the President of Panama met
Mr. Luitweiler and the two American Commissioners on their arrival
in Panama, and the Joint Commission soon thereafter began its work
in purchasing private lands in the zone.
This does not seem like a reluctant Panama helping to purchase this
property. It seems they gave their full permission and certainly they
ratified in every possible way the bona fides of the 1903 treaty.
The particular Commission on which ]Mr. Luitweiler served was one
of several Commissions appointed during the period 1905 through
1920. but the work of this particular Land Commission was exception-
ally significant inasmuch as it was carrying out the instructions of
President Wilson that all remaining private lands in the zone should
be acquired by the United States. Mr. Luitweiler has a wealth of infor-
mation for the committee, and we are indeed fortuiuite to have his tes-
timony, both for the immediate purpose of setting the record straight
and for the larger purpose of preservinof for history Mr. Luitweiler's
experiences in Panama with Colonel Goethals, now "General ;" Colonel
Gorgas, now "General;" and the other great Americans who saw this
great national adventure in Panama through to a successful
conclusion.
GREAT ALABAMIAN
General Gorgas was a great Alabamian who was able to eliminate
the yellow fever there. Without his contribution I feel that the canal
would never have been built. That was one of the factors involved in
the French failure to build a canal several decades before that.
The committee is also deeply honored to have an opportunity to re-
ceive the testimony of Doris McClellan, who is clerk of the U.S.
district court in the Canal Zone but who is also the daughter of
Senator John McClellan, who is greatly missed by the Senate and the
countiT and who was to me a friend and a guiding example. We will
hear from Miss McClellan, I am sure, that she is and has been cus-
todian of the records of the land purchases by the United States in
Panama and that under her safekeeping and custody these deeds
and other records have been preserved and they are here this morning
for the observance of the subcommittee and as a matter of record, in
order to show without doubt the ownership by the United States of the
property in the Panama Canal Zone by actual purchase.
Miss McClellan is here to authenticate documents sent to the sub-
committee by order of the U.S. district court. These documents are
present in the sealed chests before us. The committee is advised that
these documents do establish the title of the United States to the real
property in the Canal Zone which was purchased by the actions of the
Joint Land Commission on which Mr. Luitweiler served. Very likely,
many of the documents upon which Mr. Luitweiler himself worked
some 65 years ago are here in these chests.
At the direction of the court, the subcommittee will open the chests
and examine the records. As clerk of the court. Miss McClellan will
certify the authenticity of the documents, and a representative
sample will be received in the form of authenticated copies for in-
clusion in the record of this proceeding.
I might also suggest that a portion of these deeds be inserted in
the Congressional Record as typical of the deeds of which there are
several thousand that are in possession of the court showing owner-
ship by the ITnited States of land in the Canal Zone.
Thereafter the documents will be returned to the custody of the
administrator of the U.S. court, and they have been in his custody
under the direction of Miss McClellan, and inasmuch as they have now
been microtilmed, I understand they will eventually be retired to the
National Archives and the microfilm itself will bear witness to the
title of the United States. For that reason the committee also has
present a microfilm reader-printer so that again a representative
sample of the microfilm record can be secured by the committee, au-
thenticated by Miss McClellan, and included in the record of these
proceedings.
We are delighted to have you. Miss McClellan and Mr. Luitweiler,
to appear before our connnittee to give us the benefit of your knowl-
edge as to the acquisition by the United States of property in the
Panama Canal Zone.
Miss McClellan, we are delighted to have you here. I miffht ask
that you state your name and your present position with the U.S.
Government.
TESTIMONY OF DORIS McCLELLAN, CLERK OF THE U.S. DISTRICT
COURT FOR THE PANAMA CANAL ZONE
Miss McClfxlax. I am Doris L. McClellan. I am clerk of the U.S.
district court for the Canal Zone.
Senator Allen. We see on the table before us three large wooden
chests. I wish you would explain to the committee just what these
chests are and what is in the chests, and then we will actually remove
the contents in a moment.
Tell us. if you will, how they came to be here in the U.S. Senate
subcommittee hearing.
Miss JNIcClellan. The chests that you see here in front of you today
hold the original records of the U.S. district court where the United
States purchased the land from Panama, beginning with the year 1903.
These three crates go up through 1914. There are many more boxes
similar to these, but these were the very first three and these were the
very first records.
Senator Allen. When did you send these original records up here
to Washington? Why did you do that?
Miss McClellan. Because there were so many problems with the
two countries down there, and you never know from day to day
whether there is going to be a riot or what is going to happen. My
court is right on the border and my i-ecords were not being properly
cared for. I thought these records Avould be valuable someday to some-
one who would want to prove that we did buy the land. So I put a
microfilm unit in my office and I started microfilming all of my rec-
ords. That was in 1975 when I started.
These crates, including the ones you see here, I decided they were so
important that I did not want them to go to the Xational Archives in
Suitland, Md., where the rest of our records are. I decided that I
would ask the Administrative Office of the U.S. Courts if I could let the
crates sta}^ there. With the hearings coming up and everything, I
wondered if maybe some of the members of the subcommittee might
want to see them to get proof that we actually bought the land.
Senator Allen. TIow long have you been clerk of tlie district court?
Miss McClellan. I was appointed clerk in 1971, but I served 2
yeai-s as deputy clerk prior to that.
Senator Allen. As clerk of the district court for the Panama
Canal Zone was it a part of your duties and responsibilities to have
custody of the original documents relating to the purchase by the
United States of land in what is now the Panama Canal Zone?
Miss McClellan. That is correct. I acquired those records when I
became clerk of the court. Then it was my job to take care of them.
Senator Allen. Has there been any acquisition of property by the
United States during your term of office as clerk?
Miss McClellan. No, sir.
Senator Allen. All of this was closed out many years ago?
Miss McClellan. Yes.
Senator Allen. Where were the records kept there in the court in
Panama ?
Miss McClellan. They were not in my court per se but they were in
the building: about six blocks from where my court is. It was a build-
ing with a tin roof on it where the air could get into it. I just felt that
that was not a proper place to keep them.
In the meantime, I leased a building called a chalet on a military
base for safe keeping of my records. I transferred all of my records
from the wooden building with the tin roof up to that other place.
They now are in the chalet.
However, most of my records with the exception of certain critical
records from 1903 up to 1965 are now in Suitland, Md., in the Archives.
They are stored out there. These three boxes have been microfilmed
and will eventually go out to the Archives.
Senator Allen. Do you think this is a complete set of the deeds?
Miss McClellax. Oh, yes, it is, sir.
You are welcome to open them and look at them, hold them in your
hand, or whatever you would like to do.
Senator Allen. You felt througli your method of storage of the
documents, that they were not getting proper care from the standpoint
of the elements and possible damage to the documents themselves. Is
that right?
Miss McClellan. That is correct.
Senator Allen. For that reason, plus the fact that you figured for
their safety from other points of view, you felt it well in 1975 to send
the documents up here to the Administrative Office of the United States
Courts. Is that right ?
Miss McClellan. That is right.
Senator Allen. They have been there subject to your order, how-
ever. Is that correct ?
Miss McClellan. That is correct.
Senator Allen. Now, I think it might be well at this time if we
would ask the officers, if they would, to come aroimd and help us get
these documents. We will ask you to take all the documents out of one
of the boxes. We will then see if we want to go ahead with the other
boxes as well.
Are there steel boxes under the Avooden frames ?
Miss McClellan. No: they are wrapped in plastic.
Senator Allen. What is the approximate size of these three chests ?
Miss McClellan. Sir, I could not really tell you that.
[Police officers open up crates.]
Senator Allen. If you would, officer, take them out and put them in
front of the boxes.
[Material removed from crates in form of large leather-bound
books.]
Senator Allen. All of these have been microfilmed. Over here on the
microfilm machine each one of the deeds has been recorded?
Miss McClellan. Yes, sir. Those are our official records now, that
is, the microfilm, because these other books are so old.
Senator Allen. I wonder if we might see some of the microfihn
prints.
[Senator examines books and microfilm.]
Senator Allen. What we have here on microfilm tape is a perma-
nent record of the original deed, as I understand it.
[Senators examine microfilm.]
[One book opened from under plastic cover and examined by
Senators.]
Senator Allen. I see it is recorded in English and Spanish.
Miss McClellan. That is correct.
Senator Allen. Do you know how many deeds are contained here ?
Miss McClellan. No, sir, I have not researched that.
Senator Allen. Contained here is the record of all the deeds shoAv-
ing purchase by the United States.
I see that these show purchases from private owners in Panama in
the Canal Zone. I see that in some instances they may have bought
and paid for them several times.
This was quite a job to put all this on microfilm, wasn't it ?
Miss McClellan. Yes, it was.
Senator Allen. This will then preserve the original record for
posterity. Is that right ?
Miss McClellan. Yes.
Senator Allen. Where is the original record ?
Miss McClellan. It is in the Administrative Office of the Courts.
Senator Allen. It was our purpose, as I understand it, under the
direction of President Wilson to purchase all of the private property
there.
Miss McClellan. I have a list of all the names of the people con-
nected with these transactions.
Senator Allen, I did not bring the original copy of this but this is
the list of persons and what I would call the final report for you
[indicating].
Senator Allen. Thank you.
You will be able to leave that with us ?
Miss McClellan. Yes, that will be fine.
Senator Allen. This has listed here on several dozen pages the
amount claimed and the amount paid. There are literally hundreds of
these. You actually give the names of the Panamanians who own
property ? Is that correct ?
Miss McClei-lan. Yes.
Senator Allen. I am glad to have this for the record.
[General discussion held anions the members of the media, the
Senators, Mr. Luitweiler, Ms. McClellan, and the audience.]
Senator Allen. We have asked Mr. Luitweiler to come to the wit-
ness table also.
The distinguished Senator from North Carolina, Mr. Helms, who is
the Senator from Mr. Luitweiler's home State, is here to present Mr.
Luitweiler.
Senator Helms, please proceed.
STATEMENT OF HON. JESSE HELMS, A U.S. SENATOR FROM THE
STATE OF NORTH CAROLINA
Senator Helms. Thank you, Mr. Chairman.
First of all, I want to commend you on your opening statement. As
has been the case throughout the decision and debate on the treaties,
the debate has certainly been capably led by the Senator from Ala-
bama. He has supplied an immense amount of commonsense to the
debate.
I have often thought, Mr. Chairman, that the Lord gave both the
United States and me a good constitution. It is up to us not to abuse
them. I am often fearful of the abuse of the U.S. Constitution.
8
In connection with your comment about the disposition of U.S.
property, I believe the record should show that more than half of the
Members of the House of Representatives — 231 Members in fact — have
cosponsored a House resolution expressin^: the conviction that Con-
gress, both the House and the Senate, must act on the disposal of the
Canal Zone. This clearly is a warnino^ to the Senate ; it may even be
a red flag that, if the House of Representatives is ignored in tliis mat-
ter, then the House of Representatives may indeed find it difficult to
facilitate the implementating legislation which will be required by
the treaties if the Senate should make the mistake of approving them.
Xow, as to this distinguished citizen from our State, Mr. Chairman,
over the last year or so, ^Members of the Senate have been called upon
to do a tremendous amount of reading and research to familiarize our-
selves with the historical and technical data that we need at our finger-
tips in order to participate in the great debate on the Canal Treaties.
I do not know one Senator who has not been sent back to the history
books by this tumultuous issue; and judging from the people I talk
to, it has prompted many other Americans to do the same. I myself
have had the good fortune to talk to many experts in the maintenance
and defense of the canal. Not too many months ago I went to the Canal
Zone to talk to the people who live there and to many Panamanian
citizens.
So I have had a rather thorough education in the matters affecting
the canal. I am glad I have had it.
But one of the greatest contributors to my education, I might say,
has been a series of letters I have received from an extraordinary gen-
tleman who is with us this morning, Mr. J. C. Luitweiler. ]\Ir. Luit-
weiler first wrote to me after seeing a "Meet the Press" broadcast on
the Canal Treaties, in which I was participating.
Since that time, I think it is only fair to attribute a great deal of
what I know about the history of the Panama Canal to a "correspond-
ence course'' with Mr. J. C. Luitweiler, of Tryon, N.C.
Disturbed by what he was hearing about our acquisition of the Canal
Zone, Mr. Luitweiler took to his typewriter to set the record straight.
I believe the testimony here today will demonstrate that no one could
be more qualified to do so than he.
Mr. Luitweiler, now 88 years of age, is what the historians would
refer to as a "primary source." To put it bluntly, that means he knows
what he is talking about because he served as the secretary of the Joint
Land Commission by means of which property owners in the Canal
Zone were compensated.
Mr. Chairman, he was appointed to this post by two American and
two Panamanian members of the Commission, and it is he who signed
the many orders of payments for the claims presented by the property
owners, many of whom did not hold titles in the Anglo-Saxon mean-
ing of the term.
Mr. Luitweiler can singlehandedly refute the rather sophomoric al-
legations of those in the Senate and elsewhere who continue to claim
that we somehow "stole" the Canal Zone. Mr. Luitweiler can refute
this with incontestable facts.
He can speak about such people as Colonel Goethals and William
Crawford Gorgas from personal reminiscence. He was on the scene
9
when the Canal Zone was transformed from a pestilential swamp to
the greatest manmade Avaterway in the world.
It is my pleasure to present my fellow North Carolinian, Mr.
Luitweiler.
Senator Allen. Thank you, Senator Helms. We greatly appreciate
that fine introduction.
Mr. Luitweiler, I think for the benefit of the committee and the rec-
ord you might explain just what your connection was, and what years
you had that connection, regarding the purchase for the United States
of America of land comprised of the Panama Canal Zone.
TESTIMONY OF JAMES C. LUITWEILER, SECRETARY OF THE JOINT
UNITED STATES-REPUBLIC OF PANAMA LAND COMMISSION
Mr. Luitweiler. If you look at a copy of the treaty which was sent
to me, you will find article VI and article XV on which the Joint Com-
mission operated.
Senator Allen. Yes, I have both right here.
Mr. Luitweiler. You will find in article VI that the Commission
was appointed of two Panamanians and two Americans who would
evaluate whatever property was taken for the construction, the main-
tenance, the operation, the sanitation, or the defense of the canal.
At the end of 1913, Colonel Gorgas, for reasons best known to him,
decided that the whole Canal Zone was necessary for that purpose,
not just a piece of it but all of it. So he asked President Wilson to de-
clare that the United States would expropriate the entire Canal Zone
and everything on it for the benefit of the United States.
He sent down two Commissioners, Dr. Rowe and Dr. Faulkner. I
went along as a secretary. On the way down I was told that I was too
young for the job but if I would grow a mustache I might be ap-
pointed Secretary of the Commission. That is why I have the mustache
liere today. That is a 65-year-old mustache. It is worth $100 a month
to me.
Senator Allen. To put a little age on you so that you could qualifv^
for the higher position?
Mr. Luitweiler. I was 23 then and I looked like a kid. With a
mustache I looked 10 years older.
Senator Allen. It is not necessary no^^■ to establish your age to have
the mustache, is it?
Mr. LuiTAVEiLER. If I shaved it off, I would not look any younger.
[Laughter.]
Senator Allen. I see.
Mr. Luitweiler. Anyhow, we got down to Panama and we met two
Panamanians, Dr. Boyd and Dr. Lewis. They spoke Spanish and
English. Our Commissioners and I spoke English and Spanish also.
Within 24 hours it was agreed that I should serve as the Secretary to
the Joint Commission.
I think another thing happened that is good for the record.
Senator Alt,en. This is what year?
Mr. LuiTw^EiLER. 1913.
General Gorgas had beautiful quarters set up for us on the Canal
Zone. He said, 'T want the Commission under mv thumb." He said
that to other people, too.
10
The Americans said that they would have to confer with Panama-
nians about that. We went to Panama, and the President of Panama
showed us the palace. He said we could use it for the meetings if Ave
liked. It Avas beautiful, like a judge's chambers.
AMERICANS AVEI.COME
So he treated us handsomely. He Avanted to do everv'thing he could
to make us welcome because the President of Panama Avas all for tak-
ing over the Canal Zone bv the United States and for paying for the
property that Avas OAvned there.
Senator Alt-en. Had the canal opened at that time?
Mr. Luitaveiler. Xo, not until the end of 1914. This Avas preparation
for the openng of the canal.
After that constitution of the Commission, they appeared in public
session. Judge Faye, General Counsel for the Panamanian Canal Com-
mission, testified before the Commission that in his opinion all the
thousands of Panamanians, Xegroes from the Caribbean Islands, and
so on doing Avork on the canal Avere there as squatters. They had no
title. American law said you had to be 20 years or 80 years before
you can acquire title to land that you sfiuatted on.
That matter became the subject of discussion at the first meeting of
the Joint Commission in the judge's chambers. I sat in there about a
month. The Panamanians brought in a lot to demonstrate the civil
laAv. They said these Avere the laAvs that applied. They said that people
Avere squatting on the land and they said that these people Avere entitled
to be treated under Panamanian laAv.
Senator Ali.ex. You Avent by the civil laAv of Panama in paying
compensation for the land, did you not ?
Mr. LuiTWEiLER. The civil law of Panama provided that anybody
AA'ho squattered on land even for 24 hours, if he Avas kicked off, he Avas
entitled to be paid for his improA'ements.
Senator Aixen. You respected that laAv in making your acquisition?
Mr. LuiTAVEiLER. This is an aside. There Avas quite an argument
which Avent on regarding this subject. Dr. RoAve said, "If Ave accept Dr.
FaA'e's principle and kick all these people out Avithout paying a cent, Ave
Avill have a black eye."
Senator Allen. You didn't folloAv that ?
Mr. LriTAVEiLER. We didn't. We decided on the contrarA% which fol-
loAA-ed the Panamanians' idea of the Spanish laAv applying.
Since there Avere tens of thousands of pieces of claims, the Commis-
sion decided it could not hear eaHi and everv individual claiuu Instead
of that, they set up a yardstick. There Avould be so much. $50, for CA^ery
hut Avhich was planted Avith banana trees; there AA'ould be $.50 for a
man and his Avife; if he had children, there Avould be $50 for CA^ery
child.
DOUBLE PAYMENT FOR PANAMANIANS
Senator Ali,en. When you ascertained hoAv much the Panamanians
in possession of the property Avere entitled to, vou doubled that, did
you not?
Mr. LuTTAVKTLER. That is right. If a man Avas a Panamanian citizen,
it Avas doubled.
11
Dr. Howe and Dr. Faulkner had the view that these people were
being kicked out of their land. They said, "If we follow Judge Fare's
principle, this would be a black eye."'
You remember when the English kicked the French out of Canada,
they had that situation. They did not want that on our conscience.
They wanted the Panamanians to be satisfied.
When it was published in the newspaper that the award was going to
be on the Spanish law — and they actually set out the way it was to be
done — the Panamanian citizens and the government and everybody
acclaimed it. The only people who objected was General Gorgas be-
cause he thought it was going to add to the cost of the canal. Paying
these individual claimants would probably cost $150,000 or $200',000.
This was a drop in the bucket compared to the cost of the canal.
Senator Allex. You paid not only for the land, but you paid for
the improvements that you found on the land. Is that right?
Mr. LuiTWEiLER. Yes. In addition, we paid for consideration of the
fact they had been evicted from their homes.
Senator Ali-ex. The Commission was charged with the duty and the
responsibilitv of buying all the land in the Panama Canal Zone. Is
tliat right? '
Mr. LcTTAXTiTLER. That is right.
Senator Aleen. They made a good faith effort to do that. Is that
right?
AWARDS PAID WITHTX 2 4 HOURS
Mr. Luitwetler. Yes; and it could be said to Colonel Gorgas' credit
tliat none of the awards that were paid were turned down. Thev were
paid within 24 hours. So the U.S. Government did its part in paying
religiously every claim if the award was made.
Senator Allex. Did the Commission in your judgment buy all of
the property in the Panama Canal Zone for the United States of
America ? Did the Commission purchase from private owners all of the
land in the Panama Canal Zone for the United States of America ?
Mr. LuiTWEiLER. As far as I know, they did because at the end
Senator Allex. The Commission was open for anyone to come in to
present a claim for property. Is that right ?
Mr. LuiTWEiLER. Yes. Unfortunately, I had a bad case of malaria at
Ihe end of 1914 and I was an invalid.
Dr. Rowe and Dr. P'aulkner were replaced by two other American
Commissioners. That Avent on for a couple of years.
Senator Allex. By the way, this was rather a strange Commission.
You had two Panamanians and two Americans. That is not usually
tlie case. If they could not agree, I believe the tAvo governments would
apix)int a referee or an umpire.
Mr. LuiTAVEiLER. Ycs, an umpire.
Senator Allex. That's an unusual Commission.
Were there many instances of having to get an umpire or did the
Panamanian Commissioners and the American Commissioners gen-
erally see eye to eye?
Mr. LuiTWEiLER. They agreed pretty well while I was there. But
when they were replaced by two more Commissioners, the fat was in
the fire. They didn't agree at all.
Senator Allex. Then they had to appoint an umpire?
12
Mr. Luitavt:iler. Yes. He happened to be a Spanish general or ad-
miral who had been wounded in the Spanish-American War. Obvious-
ly you can figure what happened to the claims. Panama got a very good
deal.
Senator Allen. Did the Commission have maps of the Panama
Canal Zone, land mass ? Did you have maps to go by ?
Mr. LuiTWETLER. You have to picture the Canal Zone I saw in those
days. It was 500 square miles of land. There were a few squattere here
and there. After the Commission had gotten itself settled down, they
made manv excursions throughout the Canal Zone taking testimony
of individuals. They would take individual testimony. They would
move to another place and so on. They scattered all over.
CAXAL ZONE A SWAMP
They did not plot out a piece of land on a map. It was not plotted
that way. The Canal Zone was almost a swamp when Gorgas came
there.
Senator Allen. The Government of Panama by the appointment of
these Commissioners, acting under the treaty, seemed anxious to have
the United States buy this property, were they not?
Mr. LuiTWEiLER. If you go back to the original treaty
Senator Allen. I am not talking about the treaty. I know what the
treaty says. At the time you were working down there, did not the
Panamanian Government seem anxious to cooperate with the United
States in buying this property ?
Mr. LuiTWEiLER. Yes, but we did not buy anything from the Pana-
manian Government.
Senator Allen. Yes: I know that, but from the private owners.
They encouraged the landowners to sell, did they not ?
Mr. LuiTWEiLER. They were delighted. Their claims were far in ex-
cess of what the Panamanians even thought was correct. INIany of the
claims that we heard in our session said that the Panamanians them-
selves said it was ridiculous.
For instance, there was a big cocoa plantation where they raised
cocoa. It had been there for 10 years. They wanted to be paid for what
the cocoa plant would be worth in the next 20 years. The Commission
turned that down.
But the big thing was, from my point of view, the individual Pana-
manian landowner. I cannot remember any dissent at all by an indi-
vidual landowner.
TREMENDOUS INCREASE IN LAND VALUES
Senator Allen. I know there is an interesting phrase in the 1903
Treaty that the payment for the land or damages would be based upon
a valuation before the signing of the treaty. That indicates in our
mind — and I would like for you to verify this or say it is not correct —
that the coming of the canal greatly increased land values in Panama.
Is that not right ?
Mr. LuiTWEiLER. I don't think the American Commissioners paid
attention to that clause.
Senator Allen. I understand that, but is that not a fact that this
coming of the canal raised land values?
13
Mr. LuiTWEiLER. Yes ; tremendously.
Senator Allen. It was not a disservice then to the Panamanians.
Mr. LuiTWEiLER. That was a yardstick for the vahiation of the land.
Senator Ajllen. Let me ask you this. I have never had the pleasure
of meeting you before this morning, Mr. Luitweiler. I have not sought
to prompt you in any way.
Did the Commission buy any land which was the route of the canal
itself? Did you purchase land
Mr. Luitweiler. No. The Commission had nothing to do as to where
the United States took the land from Panama for the canal. The
Commission had nothing to do with that. If you road article XV you
will see that their idea was to pay for the property owners whose land
was taken in damage. That's what they did. There never was the
United States and Panama before the Commission as a court.
Senator Allen. The route of the canal was filled up with the water.
Was it full at the time you went to the Canal Zone ? Had the water
filled up that area where the Canal Zone was? Some of it was still
without water ; right ?
Mr. Luitweiler. I was there at the opening of the canal.
Senator Allen. But when you first got there was the canal in being;
whether it was open or not ?
Mr. Luitweiler. The canal was in being; yes. I think in August
1914, it opened.
Senator Allen. Then what the particular Commission on which you
served did was to buy the land from the bank of the canal outright.
Is that right?
Mr. Luitweiler. That is right.
Senator Allen. The other Commissions established before the par-
ticular commission on which you served may presumably have bought
out private land holders along the route of the canal but your Com-
mission did not buy the land where the canal actually went because
the canal was already there and in any event that was covered by the
1908 treaty. Is that right?
INIr. LuIT^vEILER. That is right.
If you read the 1903 treaty, you will find 5 miles on either side of
the canal was granted to the United States. They did not have to buy
that land from Panama because they paid $10 million for that land
at that time and $250,000 a year.
I know a lot of people contend that we do not own the land because
we were a leaseholder. But if you buy a leasehold in perpetuity, I do
not see any difference.
Senator Allen. Miss McClellan, I would like for the record to show
this. I would like for you to identify several representative deeds and
certify such records. Also, I would like for you to identify the corre-
sponding portion of the microfilm which has been develop for the com-
mittee's records. You don't have to do it now but when we recess we
would like for you to do it.
Without objection, the representative copies of the deed records and
representative copies of the corresponding microfilm developed will
be inserted in the record at this point.
I ask also that we put into the record representative sheets from the
joint report. It would be so voluminous, so we will not include that,
but ask that there be representative sheets picked out for filing in the
14
committee report and to state the exact number of claimants and
sellers of property for the record. However, the matter has been
called into question and, therefore, perhaps the entire report should
go into the record so that the issue will not again be raised in error.
Senator Helms, would you like to ask a couple of questions'^
Senator Helms. Thank you very much. I would like to ask two or
three, Mr, Chairman.
Mr. Luitweiler, what you have said here is that the United States
had the sovereign right to exercise eminent domain and that sovereign
right came down from the 1903 Treaty. Is that right ?
Mr. Luitweiler. Yes. That was not disputed at all. The Pana-
manians and Americans recognized -that w^e had sovereign rights to
the Canal Zone, rights as if we o^vned the canal.
Senator Helms. There was no dispute about it?
Mr. Luitweiler. No dispute whatsoever about that.
Senator Helms. Did any property owner claim he had been under-
paid for his property ?
Mr. Luitweiler. No. Everybody, including the press, acknowledged
that everybody was being overpaid.
Senator Hekms. So the newspaper records of that day will show
that not only were the property owners satisfied, they were delighted
with what they were paid ?
Mr. Luitweiler. I think if you get the Panama Star and Herald
of that day you will find that they were laudatory toward the work
of the Commission.
Senator Helms. As a man who was on the scene and participating
in these events in the early part of the century, what do you say now
to those in the Senate and elsewhere who claim that the United States
stole this property ?
Mr. LuIT^vEILER. Do you want to get me stirred up? [Laughter.]
I really want to have at least 15 minutes to tell what I think.
[Laughter.]
I think Teddy Roosevelt did a wonderful job in getting the
canal land from Panama and not creating a problem with Panama,
but in getting Colonel Gorgas down to the Canal Zone and making the
Canal Zone a fit place for Americans to work and live.
What worries me most about the present situation is that —
Mr. Torrijos, of course, has entertained people in the daytime, but
Gorgas made the Canal Zone a healthy zone, probably the most
healthy place in the tropics for Americans to live and work.
Senator Helms. For evervbody to live and work, Panamanians as
well as others. Is that correct?
REASON FOR "lUXURy"" LIVING
Mr. LuIT^vEILER. That is what the Panamanians claim. Right across
the border they lived in squalor while Americans lived in luxury.
That was all because JNIr. Gorgas decreed that evei*y American down
there should live in a screened-in barracks. Every American who lived
in a home wnth his family should live in a screened-in home with a
well-kept lawn.
Of course, you know mosquitoes breed in mudholes and he was
against that.
15
You have to live in the tropics for many years to realize what it
is to be there and to be subject to the things that the tropics have. You
don't experience that up here.
I lived in Yucatan for 5 years before I went down to Panama. That
w^as another jungle. I know what it is to live in a jungle and ride
horseback through the jungle and have Indians cut your way through
the jungle.
Some of the Commissionere w^ent out in the jungle to take testimony.
AVe had a group of a half a dozen Indians with machetes chopping
our way thi'ough the jungle. "We don't have any jungle in the United
States to compare with the jungle in a tropical country.
Of course, in Panama it is w-oree than ever. A jungle will creep back
and take over within a month or two.
One of the things I am very fearful of is that when the treaty is
passed, within 2 months the boundaries between the Canal Zone and
Panama will come down and the Panamanians will move in there.
The Panamanians are not so fearful as we are of malaria because
to Panamanians malaria is what a common cold is to us. They get a
chill and fever and that is it. To us it can kill us.
In my opinions, as soon as the border between the zone and Panama
comes down, the jungle will creep back in and the American tech-
nicians who are still responsible for the Canal Zone will leave the
Canal Zone. I do not give that canal more than 2 years of life once
the Canal Zone is turned over to Panama.
Senator Allen. Thank you.
Miss jNIcClellan, these records here are the records of the purchases
of the United States from the Panamanians who had property in
the Canal Zone. Is that right?
^fiss ^NIcClellax. That is right.
Senator Allex. Is the final report of the Land Commission the final
report of all the purchases or is that the last report following a series
of monthly reports?
Miss McCleli^\x. That is the last report.
Senator Allex. Is that cumulative or not? Does it just represent
the last purchases or does it represent all the purchases?
Miss McClellax. I thought it represented all the purchases.
Senator Allex'. In other words, it would he cumulative?
^Nliss McClellax. That is right.
Senator Allex". I will ask permission that the chairman, if he sees
fit, may order the full final report inserted in the record, or else, as I
suggested earlier, may order the staff director to get representative
pages for inclusion in the record. I would like to have authority to
insert the whole report in the record since it is so important together
Avith representative deeds and perhaps the Boundarv Convention of
1914.
Is there objection to the chairman's taking that action?
[Xo response.]
Senator Allex. Hearing no objection, it is so ordered.
]Miss McClellan and ]Mr. Luitweiler. I Avant to express my personal
appreciation and the appreciation of Senator Hatch and Senator
Helms for what we consider a trreat public sei'A'ice that both of you
have rendered in bringing this information before the committee and
the full Senate as well as before the Nation. It will help to settle the
16
dust on this question of whether or not the United States owns the
land in the Panama Canal Zone. I think it has been established, with-
out doubt, that the United States does own this land.
The United States is the grantee in these deeds, is it not?
Miss :McClellax. That is right.
Senator Allex. So I think we are now faced with the constitutional
issue of whether the administration will allow the House of Repre-
sentatives to act on the transfer of this property as required by article
IV, section 53, paragraph 2, of the Constitution.
It is clear to me and I believe it is clear to the majority of the meni-
bers of the subcommittee that prior Congressional authorizations is
required.
I do not believe we are going to have too many statements made in
the future that the United States was just renting this land in the
Canal Zone. I think it has been established without doubt that the
United States, by right of purchase and by right of deed, owns the fee
simple title to the land in the Canal Zone.
So we do express our deep appreciation to both of you for the public
service that you have rendered.
Senator Hatch, do you have any questions ?
Senator Hatch. I also would like to thank you both for the testi-
mony that you have given. I think it is very important for every
American to understand the situation. You have helped us very much.
Senator Aelex. "We want to thank you both again very much. You
have the thanks of the subcommittee and the full committee.
I will take the liberty of saying that you have the thanks of the
Nation for appearing here today.
The subcommittee is adjourned subject to the call of the Chair.
[Whereupon, at 11 :?>0 a.m., the subcommittee was adjourned.]
[The aforementioned final report, Provisional Boundary Agree-
ment, and representative copies of the deed records follow :]
[Also included hereafter is a statl' report to the Chairman and a
historical sununary of the propriety oi)erations of the United States
in the Canal Zone. The historical summary was prepared by the
Panama (^anal (^ompany and is useful in the context of the investiga-
tion by the Subcommittee primarily in describing in histoiical terms
the several agencies of the United States which acquired realty for
the United States at each of the various stages of the eventual pur-
chase by the United States of fee simple title to the Panama Canal
Zone.]
17
FINAL REPORT
OF THE
ClOINT COMMISSION
APPOINTED BY
THE PRESIDENT OF THE UNITED STATES
OF AMERICA
AND
THE PRESIDENT OF THE REPUBLIC OF
PANAMA
under the provisions of Articles VI and XV of the
treaty ratified February 26, 1904.
Tfin PANAMA CA-NAL PHESS
MOUNT HOPE, C. Z.
1920.
19
^:-^<^^g^r^^4, '■:^ Panama, R. P., ; J
'^!M&t&:M-M^^,] ni^pSr^ _ March 10, 1920. :{
■>The Honorable, ~' ~- ^i^^/- > ''^m^^d' -^IJ^-)
^^''j-pv; • The Secretary of State ' -'
:}:S-pf the United States of America, ^
^^ V* ' Washingto7i, D. C.
The Honor able, ^;;i^> . . "
/:\ giti^:, The, Secretary of Foreig}i Relations
•: ":i'^i:'^y^i:':f^:of the Republic of Panama,
■ v- Pafiama,'R::P.
Sirs: The Joint Commission established under the,
treaty between the United States of America and the
RepubHc of Panama, ratified February 26, 1904, having
completed the cases pending before it, has the honor to
submit the following report: "^- '■-■ ' ■-■ r: ^^ ; -
The provisions of the treaty under which the Com-
mission was organized read as follows:
-j: "Article VI. The grants herein contained shall in no manner
invalidate the titles or rights of private land holders or owners
of private property in the said zone or in or to any of the lands
or waters granted to the United States by the provisions of any
Article of this treaty, nor shall they interfere with the rights of
way over the public roads passing through the said zone or over
any of the said lands or waters unless said rights of way or private
rights shall conflict with rights herein granted to the United States
in which case the rights of the United States shall be superior.
All damages caused to the owners of private lands or private
property of any kind by reason of the grants contained in this
treaty or by reason of the operations of the United States, its
agentsor employees or by reason of the construction, maintenance,
operation, sanitation and protection of the said Canal or of the
works of sanitation and protection herein provided for, shall be
appraised and settled by a joint commission appointed by the
Governments of the United States and the Republic of Panama,
20
/;whose decisions as to such damages shall be final and whose awards
V 'as to such damages shall be paid solely by the United States.
No part of theWork on said Canal cr the Panama Railroad or on
'.Lahy auxiliary works relating thereto and authorized by the terms
':-f6f- this treaty shall be prevented, del ay ed^ or impeded by or
r pending such proceedings to ascertain such damages. The ap-
t. praisal of said private lands and private property and the assess-
')'iment of damages to them shall be based upon their value before
^:-^he date of this convention.". ' '^ • . •; : ^:_^^ . . "^ a -^^ -
'■•"-7 -''Article, XV. The joint commission referred to in AKicle yi"^.,
shall be established as follows: -^^ '_A;V >. uv*^*-=f^.; ^ \'-:: :: ■'■::.- -^-^
:. "The. -President of the United Sjtates'slfall nominate two per-
. sons and the President of the Republic of Panama shall nominate
two persons and they shall proceed to a decision; but in case of
" disagreement of the Commission (by reason of their being equally
divided in conclusion) an umpire shall be appointed by the two
Governments who shall render the decision. In the event of the
. death, absence, or incapacity of a Commissioner or Umpire, or
: of his omitting, declining or ceasing to act, his place shall be filled
by the appointment of another person in the manner above indi-
■ cated. ' All decisions by a majority, of the Commission or by the
: Umpire shall be final. '\:^ '::•::. iy-y4i-:'-y--^'^'-^f:i^-:i:'<:^::-
Since 1912 the scope of the work of the Commission
has been largely determined by an Act of Congress of
.. the United States, approved August 24, 1912, known
' as the Panama Canal Act, which so far as it relates to
. matters under consideration provides as follows;
; ^; "The President is authorized to declare by Executive Order that
ail land and land under water within the limits of the Canal Zone
is necessary" for the construction, maintenance, .operation, sani-
tation, or protection of the Panama Canal, and to extinguish,
by agreement when advisable, all claims and titles of adverse
claimants and occupants. Upon failure to secure by agreement
; .title to any such parcel of land or land under water the adverse
claim or occupancy shall be disposed of and title thereto secured
in the United States and compensation therefor fixed and paid
in the manner provided in the aforesaid treaty with the Republic
of Panama, or such modification of such treaty as may hereafter
be made." ,; . . , / '
.In accordance with the authority contained in the
above-quoted provision the President of the United
States issued an Executive Order under date of Decem-
ber 5, 1912, declaring "That all land and land under
water within the limits of the Canal Zone are necessary
for the construction, maintenance, operation, protection
and sanitation of the Panama Canal." The same order
21
directed the Chairman of. the Isthmian Canal Commis-
sion "to take possession oh behalf of the United States,
of all such land and land under water." . ' ."
, ,.The Congress oi the United States has also passed two
ipther Acts which the American members of the Com-
..mission have considered, affected the work of the Com-
^miasion. ' Section 2 of the Sundry Civil Appropriation
ActV^approved JN^a.rch 13, 19J5rrea^
>?j .''Sec. 2. No part of the' money appropriated by this Act shall
be usecl for payment of salaries or expenses of the Joint Land
Commission, established under article fifteen of the treaty betvveen
the United States and the Republic of Panama, in adjudicating or
settling any claim originating under any lease or contract for
occupancy, madeby tha Panama Railroad Company in the Canal
Zone, or for the payment of. any awards made by said commission
on account pf^a.ny such claims. 'I: i;:;- TiV. v>- ?:-.>. \f^- ' "^^
■•f Section 2 of the Sundry; Civil Appropnatioa Act,
approved Jiilyl, 1916, reads as follows: /;: r: '\
"Sec. 2. That'the Joint Land Commission established under
article fifteen of the treaty between the United States and the
Republic of Panama, proclaimed February twenty-sixth, nine-
teen hundred and four, shall not have jurisdiction to adjudicate
or settle any claim originating under any lease or contract for
occupancy heretofore or hereafter made by the Panama Railroad
Company of land or property owned by said Panama Railroad
Company in the Canal Zone, and no part of the moneys appropri-
ated by this or any other Act shall be used to pay such claims."
■ So many different commissions have been organized
under the treaty that it seems desirable for the benefit
of both Governments to incorporate in this import a
brief historical statement giving the names of the various
commissioners and. the work accomplished by them.
Gn January 31, 1905, a Commission consisting of
Dr: Carlos A.' Cooke, and the- Hon. Federico Boyd of
Panama, and Messrs. Thomas T. Gaff and C. A. L.
Reed of the United States were appointed to fix the
value of four pieces of property taken over by the
United States. By an award dated February 21, 1905.
Domingo Diaz was allowed $41,790 for the property of
Santa Rosa and Juan Vasquez. A valuation was also
placed on the three other pieces of property without any
hearing havirg been given, and later payment appears
to have been made to Mrs. M. A. E. Delhonde, for her
property of El Hatillo de Echeves, in the amount fixed
in the award, viz: $3,050.
22
V On May 26, 1905, a Commission of the same Pana-
manian members, with Dr. H. R. Carter and Paymaster
Eugene C.Tobey acting for the United States, was
organized to give a hearing in and make final awards for
the three pieces of property appraised in the award of
February 21, 1915: 'On May 27, 1905, an award was
made in two of the claims, one for $9,000 in favor of
Abundio Caselli and Francisco Alfredo Pellas, for the
property "EJ TivoH," and the other for $1,768 in favor
of the Municipality of Panama for "La Hutrta del
Peinetero.'' The other claim, that of Mrs. Delhonde,
was not considered as settlement had been made.
On April 10, 1907, a Commission of which the Pana-
manian members were the Hon. Ramon Arias F. and
Dr. Samuel Lewis, and the American members Messrs.
B. S. :^ Ambler and Montgomery Blair, with Dr. Gil
Ponce as a substitute to act in cases in which Commis-
sioner Arias was disqualified, met in the Administra-
tion Building in the City of Panama. On April 11 both
Messrs. Arias and Ponce resigned, and on April 18
the Hon. Constantino Arosemena was appointed as the
other Panamanian member of the Commission. On
May 11, 1907, two awards were made by this Commis-
sion in favor of the Pacific Mail Steamship Company,
one for $20,000 for the improvements on the island
of Naos and the other for $24,000 for a one-half interest
in the same island.
■ Seveji other claims were considered by this Commis-
sion but no agreement was reached as to the amounts
to be paid. Three of these claims were settled in 1908
by the Umpire, the Hon. Edwin Denby, who w'as ap-
pointed to consider them. Award for $45,000 was
made by the Umpire to Francis Schuber for the estate
of Juan Diez Caballero at Corozal, for $15,000 to Maria
Concepcion Sosa for the property of Gavilaii and
Gavilancito, and $1,000 to Gabriel Duque for San
Lazaro. r^O'-r- ,
On June 8, 1908, the Commission of which Messrs.
Edwin Denby and Everett C. Bumpus were the Ameri-
can members, and Dr. Gil Ponce J., and Dr. Julio
J. Fabrega, the Panamanian members, met in Panama.
On August S. 1908, by unanimous decision of this
23
Commission an award was made for 13 pieces of prop-
erty, in the sum of $143,980. A list of the cases for
which awards were made is included herein so that this
report will contain a list of all claims considered by the
Joint Commission up to the present time. r-'"^ .'
.. Estate.
- Hectares
taken by
the United
States
Cluimanta.
Damages '
awarded. -''
Cardenas .-. .... . .:
Peoas Blancas en Medio.
Juan Grande
El and La Pihiva.
Tabernilla
Bailomonw
CalJe Bruja. ^ '
Palo Horqueta an J Matias
Barro Colorado and PalenquiUa...
Palenquilla and Frijol Grande. . .
Barro Colorado and Frijol Grande
Santa Cnu ^...
Hacienda .■Vndrade
. 126
218.5
Undivid<>d
J of 42
406
1M.5
102
248
576
162.5
100
72.5
74
Htirtado family, represented by Narciso Garay.
Louisa Cerezo and heirs of Aniceto Cerezo
Lu3 Espinosa . ..^..
Josefina Jiron and .Ajigilica Jiron :.. . . . . .-. .
Jean Gria and Ramon M. Valdez
Heirs of Francisco .\rdilla, heirs of Remigio, Du-
t;iri Correa, .\lfaro Hermanos, heirs of Carlos
Icaza Aro.-*emeua, dam.iges for whole estate.
Unknown
Unknown
Unknown
I'nknown. . ; ; ...-.,. ..i. ;^. . .'. .; .'. ........
Unknown ............. -,\. . ..l'.% ... ^ .'.... . . .".' .
Unknown .............'.. .7^. '...... :.
Antonio Andrade
$10,000
4.000
■ 250
20.000
4.500
2,000
"2,480
5,760
1.625
; 1,900
- 725
• 740
90,000
On March 1, 1913, the next Commission, consisting
of Doctors Leo. S. Rowe and Roland P. Falkner for the
United States, and the Honorable Federico Boyd and
Dr. Samuel Lewis representing the Republic of Panama,
met in Panama to consider the many cases that had
arisen through the order to depopulate the Canal Zone.
During the latter part of September Doctor Rowe re-
signed and shortly thereafter Doctor Falkner also re-
signed. This Commission submitted an interim report
under date of September 23, 1913, in which were outlined
some of the principles they had followed in deciding
cases. Published with this report were a number of de-
cisions that were rendered. The report shows that 1,253
cases were disposed of. Six hundred and two cases were
dismissed, 22 cases were certified to the Umpire, while
629 awards for a total of $295,709.18 were made. The
total of the claims disposed of amounted to$2, 226, 718. 53.
The next Commission met in Ancon on May 25,
1914. It consisted of Hon. Levy M, Kagy and Hon.
David Marks, representing the United States and the
same Panamanian Commissioners who acted with
Doctors Rowe and Falkner, their services having been
kept continuous. Judge iVIarks, dying on July 17, 1914,
little was accomplished. One hundred and three claims
for $175,605.60 were disposed of; 98 of them being
\S4
dismissed mainly becaus(e, previous settlements had
i b,een made. ;Two awards for a total of $970 were made
:m : -five clairns for September, 1914, the
■Commissiorii reorganized \yith Judge Nicholas- Cornet
?^ho was appointed in the place of Judge Marks. In
^October, 1914, the .Commission again moved its offices
';int.o the National Palace in Panama. This Commission
"continued the work of disposing of the claims until
^;;Septernber,' 1915, when Dr. Samuel Lewis^ resigned.
KFive hundred and forty-nine claims amounting to
§2,595,169.19 were disposed of; 481 being dismissed
while 68 for $688,905.15 were covered bv awards for
$161,090.66. / ;v ' -
J;:,: During the latter half of March and the first: part of
April, 1915, the Commission with Dr. Jorge E. Boyd
acting in place of the Hon. Fedefico Boyd, dismissed^
.12 claims for $28,522.60 on evidence, that direct settle-
ments had been rjiade. In addition 11 other claims for
$145,759.45 were considered and the sum of $4,549
awarded to claimants in six avyards. •., i. ;,; ,.
- On September 23, 19.15, Dr. Ricardo J. Alfaro was
appointed to succeed Mr. Lewis and for a time there-
after the Hon. Ramon Arias F. acted temporarily -in
place of the Hon Federico Boyd. One hundred and
ninety-seven claims for $210,041.38 were disposed of by
Commissioners Alfaro, Arias, Cornet, and Kagy. Of
these, 187 for $188,402.18 were dismissed while awards
in 10 claims for $22,439.20 were made in the sum of
$2,350. ;^-;.<-.-;-.-.^^:;:rfc^^:>: ' -. ^
Commissioners Boyd, Alfaro, Cornet, and Kagy dis-
posed of 63 claims for $84,377.60 prior to the resigna-
tion of Judge Kagy November 29, 1915. Five awards
for a total of $1,707.5,0 were made, covering 7 claims
for $24,620. Fifty-six claims for $59,757.60 were
dismissed. -v-
With the arrival of the Hon. Clement L. Bouve in
April, 1916, who was appointed to succeed Judge Kagy.
the Commission again began to actively dispose ol
claims pending before it. Prior to July, 1917, when the
two American Commissioners, Judges Cornet and Bouve,
severed their connection with the Commission, 1,250
claims for 84.145,593. 17 were disposed of. One thousand
25
gne hundred and fifty-two claims for $2,765,531.31
were dismissed; 14 claims were certified to the Umpire,
while awards for $181,675.30 covering 98 claims asking
for SI, 380, 061. 86 \yere made.
•^vOn November 27, 1917, the Commission reorganized
with Hon. Federico Boyd and Dr. R. J. Alfaro repre-
senting the Panamanian Government and Hon. Geo.
A. Connolly and Burt New representing the United
States. On November 12, 1918, Doctor Alfaro was
succeeded by Dr. Julio J. Fabrega, continuing, however,
to . act in all cases in which Conmiissioner Fabrega
was interested as an attorney. The Commission with
Doctor Alfaro disposed of 96 claims for 86,100,316.28;
47 claims for. $953,548. 25 were dismissed, 14 claims for
$2,884,876.26 wer6 certified to the Umpire and awards
for a total of $220,952.80 were made in 25 claims asking
for $2,261,891.77. The Commission with Judge Fabrega
as a member disposed of 53 claims for $1,937,956.04
prior to January 31, 1920. Of these 3-7 claims for
$458,014.60 were dismissed, 8 claims for $1,431,677.80
were certified to the Umpire and awards for a total of
$12,609.38 were made covering 8 claims asking for
$48,263.64.
In November, 1919, Commissioners Alfaro, Jorge
A. Boyd, Connolly, and New made one award for
$2,100.20 including interest amounting to $620.67
from December, 1912, and the same Commission
with Doctor Fabrega in place of Doctor Alfaro dis-
missed one claim for $50,000 and certified one for
$3,600 to the Umpire.
Judge Connolly resigned at the end of January, 1920.
Mr. H. A. A. Smith succeeded him on February 2.
Commissioners Boyd, Fabrega, New, and Smith dis-
missed 4 claims for $239,574 for failure to prosecute,
18 claims asking for $45,841.65 because settlement had
been made, and agreed to leave on the docket without
consideration for the reasons hereinafter stated, 16
claims for 8121,779 known as Panama Railroad lease
cases. The disposition of one other claim (the Playa
de F^lor claim for $357,040) is explained hereinafter in
detail.
26
10
Commissioners, Boyd, Alfaro, New, and Smith dis-
agreed in their conclusion relative to the liability of the
United States in the the last case tried by the Commis-
sion and certified the claim asking for $20,816.67 to the
Umpire for decision. In addition to the work specified
above, almost every Commission has taken action in
other claims due" to the number of claimants or the
questions involved.
Admiral Victor M. Concas y Palau was appointed
Umpire in 1916 to decide cases in which the Commis-
•sion disagreed. From June to August, 1916 he made 10
awards for $216,800 in claims for $839,224.03, and dis-
missed four claims tor $8,240. He also decided two
questions certified to him by the Commission as to the
liability of the United States arising out of the can-
cellation of Isthmian Canal Commission leases under
certain specific conditions.
Hon. Manuel Walls y Merino was appointed Umpire
to succeed Admiral Concas. He has made 17 awards
for $468,667.47 including interest incorporated in the
awards, amounting to $26,972.57, in 20 claims asking for
$4,453,184.65. He dismissed two claims for $177,500
and "refrained from deciding" one claim for $100,000.
The following 12 claims are now pending before the
Umpire:
27
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28
12
To summarize briefly: Since March 1, 1913, claims
numbered 1 to 3,598 for $20,660,371.19 have been filed
with the Commission. In 879 claims asjcinf^ tor Sll,-
502,943.66, 213 awards, for 81,568,581.49 have been
made. In addition awards for $304,588 were made by
prior Commissions, making a total amount awarded
of $1,873,169.49. Two thousand twenty-nine claims
for $3,719,930.95 were dismissed on evidence that
direct settlement had been made. Claims for S3, 263,-
063.13 were dismissed for other reasons, such as lack
of jurisdiction, lack of evidence, or because of duplica-
tion,, or on claimant's motion. The disposition of 17
claims for vS478,819 is explained in detail hereinafter,
while 12 claims for $1,075,352.17 are pending before the
Umpire. Of 319 claims for $620,262.28 dismi.ssed on
account of failure to prosecute same in accordance with
the default rule adopted by instructions of the two
Governments, certain ones seem to require some
explanation.
On the dav that the claims of Jose H. Stilson. docket
Nos. 3062 (amount v$40,300) and 3281 (amount 897,620)
were set for trial, Mr. C. P. Fairman, appearing as
counsel for Air. Stilson, stated in public session before
the Commission that he and his client declined to fur-
ther prosecute these claims before the Commission.
On the same day he filed a document which he entitled
"Protest, Notice, and Demand on behalf of the Owner
of Real Property" in which document he notified the
Commission of his refusal to submit the condemnation
of the property involved in these claims or the value
thereof to the jurisdiction of the Commission, and
requested that the Commission desist and refrain
from further action or proceedings respecting the con-
demnation and appraisal of the lands covered by these
two claims. By unanimous vote of the members of the
Commission a rule of default was entered against Mr.
Stilson and inasmuch as claimant failed to appear and
show good and sufficient cause for setting aside the
default within the 60-day period in the rule, the default
was made al^solute and the claims dismissed.
By agreement of counsel on both sides the claims of
the Playa de Flor Land and Development Company,
29
13
docket No. 2900, ($357,040) and of Eufracia C. de
Villalobos, e/ a/, docket No. 3064 (§89,154) wereconsoli-
dated. When they were called for trial on November 17,
1919, Mr. ;C. P. Fairman representing claimants in
both cases, made a similar statement to that mentioned
above and filed a similar document. Rule, of default
in both claims was accordingly entered against both
claimants. At the expiration of the 60-day period
fixed in the rule, the period of default in the Villalobos
claim was extended to February 24, to which date an
extension had been granted in the Rlaya de Flor claim.
However,^ on February 25, 1920, there having been
no appearance on the part of claimants in the Villalobos
claim nor any showing made by them, this case was
dismissed by unanimous vote of the Commission.
On November 17, 1919, when the Playa de Flor
Land and Development Company claim for $357,040
(docket No. 2900) came on for trial, the attorney of
record, Mr. C. P. Fairman, stated to the Commission
in public session, and also in a written document, that
he refused to submit the case to the jurisdiction of the
Commission. The American members of the Commis-
sion voted to dismiss the case at once, but inasmuch
as the Panamanian members declined to dismiss the
claim, a rule of default was entered against claimants.
At the expiration of the 60-day period fixed in the rule,
with the consent of the two Governments, an extension
of the period was granted to February 24.
Just before the close of business on February 24, the
following motion was filed by Dr. Samuel Lewis:
Come now Perry-Popham, one of the parties at interest in the
above-entitled claim and respectfully move the Commission to
continue the hearing of this case or of any matters connected
therewith and set it for hearing on the 15th of March, 1920, on
which date the said petitioner together with counsel will appear
before the Commission for the purpose of said hearing.
The undersigned hereby represents to the Honorable Commis-
sion that the above-named claimants have not, for reasons
beyond their control, been in a position to appear personally
before the Commission and present their case, which they are
ready and willing to do on the 15th of March, 1920, as the under-
signed has been informed and believes.
30
14 ■
The Panamanian members of the Commission voted
to grant the motion upon the showing made stating
their reasons therefor as follows:
. . 1.. Claimants have shown sufficient cause for not appearing on
the day set for the trial of this claim.
,2. The attorney for the claimants without their knowledge
refused to submit the case to the jurisdiction of the Commission.
:' .3. In spite of their having no notice of the conduct of their
attorney claimants have made every possible effort to obtain a
hearing before the Commission.
/ 4. Claimants have presented a motion through Attorney Samuel
Lewis, within the time fixed, requesting the Commission to set
aside the default entered against them.
The American members of the Commission voted to
deny the motion and also voted against further extend-
ing the period of default for the following reasons:
1. Said motion does not ask that the default be set aside.
2. There is no claimant in said claim by the name of Perry-
Popham as mentioned in the motion.
3. The reason assigned as to why claimants have failed to ap-
pear and prosecute said claim merely states a conclusion and does
not state facts sufficient to show cause for setting aside the default.
4. The motion does not show that the default was entered
through any mistake, surprise, inadvertence or excusable neglect
on the part of claimants.
5. The motion does not state any fact or facts showing a good
and sufficient cause for setting aside the default.
6. The facts in the case affirmatively show that all the claim-
ants were given legal notice of the date the claim was set for trial
and given every opportunity to come before the Commission and
present their case, but they failed, neglected, and absolutely
refused to prosecute their claim.
On February 26 Mr. Lewis filed another motion
requesting that all matters and interest relating to the
Playa de Flor Land and Development Company case
be left in suspense until the Umpire of the Joint Com-
mission passed upon the issues by reason of the fact
that the members of the Commission "are equally
divided in conclusion." He further represented that
"he did not apply for the setting aside of the default
but simply made a motion to continue the hearing of any
matters connected with the above-entitled case until
the 15th of March, 1920." The American members
voted to deny this motion while the Panamanian
members voted to grant the request.
31
15'
The position of the Panamanian members as shown
by the minutes, is as follows:
"The Panamanian members in refusing to adopt the proposition
made by Commissioner New that the provisional rule of default
be not set aside, proposed to have the Commission set aside the
said provisional rule of default and to set the claim for public
hearing on March 15, as requested by the claimants.
"On this point, therefore, the American members and the
Panamanian members are not in accord, and consequently, this
is a matter, as in preceding matters, in accordance with Article
XV of the Canal tl-eaty which passes to the Umpire for decision;
therefore, the Panamanian members move that the said motion
presented on the 28th of February by Dr. Samuel Lewis on behalf
of the claimants, be determined by the Umpire."
The positio^n of the American members upon this last
motion, as shown by the minutes, is as follows:
"On the 25th day of February the Panamanian members voted
to set aside the default upon the showing made, and the American
members voted that the default should not be set aside; the
default, therefore, became absolute.
"On February 26, S. Lewis, attorney for "Perry and Popham"
two of said claimants^ filed the motion now under consideration.
The motion alleged that the motion filed on February 24, 1920,
was not intended as, nor was it. a motion to set aside the default
but that it was merely a motion to continue the hearing of this'
case or of any matters connected therewith.
"Said motion further alleged that on accoiuit of the Members of
the Commission being equally divided in the vote on said motion
that the question of the continuance of the trial of the claim, and
all matters connected therewith, be certified to the Honorable
Umpire for decision.
"There was no allegation in this motion assigning any reason
why claimants had failed, neglected, and refused to file a motion
or show cause on or before February 24, 1920, for the setting aside
the default.
"On account of claimants having failed, neglected, and refused
to appear on or before February 24, 1920, and show good and
sufficient cause for setting aside the default, the American mem-
bers voted that said default be not set aside. The American
members voted that the default period should not be further
extended for the reason that ample opportunity had time and
again been given claimants to appear before the Commission on
or before February 24, 1920, and show cause for setting aside the
default. They also refused to vote for a further extension of the
default period for the reason that the Secretary of State of the
United States had not given his consent to extend the default
period beyond February 24, 1920. They also refused to extend
the default period for the reason that the Commission has for
32
16
the past five months made every possible effort to bring this
claim to trial. During said time many of the claimants have
absolutely refused, and still refuse, to tn.- said claim while the
other claimants have failed, neglected, and purposely delayed
the trial thereof. There is no showing nor attempt to show,
diligence on the part of claimants. The facts in this case disclosed
by the record, show that claimants have, for some reason unknown
to us, thrown every obstacle they could in the way of the trial of
this claim, and by so doing have delayed the work of the Com-
mission which has prevented the Commission from closing its
business at an earlier date."
The only cases remaining on the docket are sixteen
claims, generally known as the Panama Railroad leab'e
claims. The authority of the Commission to consider
these claims was the subject, in the opinion of the
American members of the Commission, of two Acts
of Congress, hereinbefore quoted. The American
members have always taken the position that they were
precluded by these two Acts from considering these
claims, which arose out of the cancellation by the
Panama Railroad Company of leases for land made
by that company within the Canal Zone. The following
is a list of the.se claims:
Docket No
Claimiint
J. H. Stilson
Mr-i. FInrella Peters
E!i-<or.ilo Herrera
Eli.st)n(ii} Herrera
F. C. Horbruger Co
F. C. Hcrl>niger Co .". . .
.r. P. Barrar.co ,
Frank L'llrich. Jr
Stilton and L'llrich . .-.
J. H. dtilson
Stil3on and L.iwrence .-
Ferno Shall
.lames Dalev
Kuriure Athletic Assomtion
.1. H. ritilson
J. H. StilsoQ
I .Amount
claimed.
1708
1!»6.3
WW
2.S4S
284!)
2S.S.!
2H46
2967
29fi9
2070
2'JS.)
3045
32o5
3282
32S.i
81
5
50,
20,
2S0 00
3.M.0O
000.00
500.00
250.00
2.iO.0O
500 00
300.00
980.00
992.00
300.00
876.00
200.00
000.00
000.00
000 00
!_
1 S12I.779.00
Except for rather extended periods during which one
or more Commissioners were lacking and except for four
recess periods of 60 d^iys each during the years 1916,
1917, 1918, and 1919, a Commission has been in session
ever since an organization was effected on March 1,
1913, and hearing or ready to hear cases which might
33
be properly presentecTto it, and to dispose of the claims
accumulating- under the depopulation order following
the Act of Congress of August 24, 1912.
One member of the present Commission was a mem-
ber of the first Commission of 1905. Except for a
few months' absence, the Hon. Federico Boyd has also
served continuously as a member of the Commission
since March 1, 1913. The following is a list of the
Commissioners and the periods of time during which
they have served:
APPOINTED BY PRESIDENT OF PANAMA. '
FEDERICO BOYD.
March 1, 1913, to March 15, 1915.
April 20, 1915, to September 22, 1915..
November 1, 1915, to November 5, 1919.
November 24, 1919, to finis.
SAMUEL LEWIS.
March 1, 1913, to September 14, 1915.
JORGE E.BOYD.
March 15, 1915, to April 19, 1915.
November 6, 1919, to November 23, 1919.
R. J. ALFARO. -
September 23, 1915, to November 11, 1918 and in
-cases considered thereafter in which Commissioner
Fabrega was interested as an attorney.
RAMON ARIAS F.
September 23, 1915, to October 31, 1915.
JULIO J. FABREGA.
November 11, 1918, to finis.
34
18
APPOINTED BY PRESmENT OF UNITED STATES.
;LEQ S. ROWE. :
1^^ March 1, 1913, to September 23, 1913.
;Rt)LAND P. FALKNER. *
^^'^^Marchi^:i913/ to Decern^ 17, 1913.
LEVi Mf KAGY. "
May 25, 1914, to November 29, 1915.
DAVID MARKS.
May 25, 1914, to July 17, 1914.
NICHOLAS CORNET.
September 18, 1914, to June 30, 1917.
C. L. BOUVE. J ,
April 7, 1916, to June 30, 1917.
GEORGE A. CONNOLLY.
November27, 1917, to January 31, 1920.
BURT NEW.
November 27, 1917, to finis.
H. A. A. SMITH.
February 2, 1920, to finis.
With the enlargement of the work of the Commission
due to clearing the Canal Zone of all private property
owners, it became necessary for the Commission to
adopt definite rules of proceclure so that its work might
be carried to conclusion. As the treaty was silent on the
subject, the two Governm.ents have at times given
consideration to the methods that should be followed
by the Commission to enable it to accomplish the pur-
poses of its formation, and certain instructions have
been issued by the Governments concerned, which were
thereupon adopted by the Commission for its guidance.
The various rules and instructions are in.cluded in
Aj-ipendix A, attached hereto.
35
19
'All awards^, opinions, and rules of dismissal have been
published in The Panama Canal Record and thus are
readily available.
. Attached to this report is a list of all the claims filed
with the Commission since March 1, 1913, prepared by
the Secretary thereof, Miss Genella Bliss, and her
assistant, Mr. John J. Dudak, showing ths docket
number of each claim, the amount claimed, the amount
awarded if an award was made and the cause of dis-
missal if the claim was dismissed as well as the ini-
tials of the Commissioners or the name of the Umpire
acting on the claim. This statement is designated
as Appendix B.
All documents, records, transcripts, the complete files
in claims numbered from 1 to 3598, inclusive, and all
other property of the Commission, except the records
and files in the claims pending before the Umpire which
will be left in the office for his use, will be turned over
by. the secretary of the Commission to the American
Minister to Panama, just as soon as the secretary
completes the check she is making of the statement to be
attached to this report.
In closing this report we wish to thank the officials
of the Republic of Panama for granting the use of the
commodious offices in the National Palace.
Respectfully submitted,
Federico~ Boyd,
Burt New,
H. A. A. Smith,
Julio J. Fabrega,
Commissioners.
37
APPENDIX A.
Joint Commission Rules of Procedure for Filing of Claims and
Conduct of Hearings, etc., 1913 to .1920:
Adopted March 18, 1913.
I. All persons having title or claim to, or interest in lands, or lands under
water, situated in any part of the Canal Zone, except in the exempted area, or
who have suffered damages of any kind by reason of the grants contained iii
the Treaty, or by reason of the operations of the United States, its agents or
employees, or by reason of the construction, maintenance, operation, sanita-
tion, or protection of the said Canal, shall file with the Joint Land Conmiission,
a statement of the entire extent of their property rights and interests. Such
statement should include the name, residence, and post-office address of the
claimant, the amount of the claim, the location and extent of the property,
indicated wherever practicable by maps or drawings, the uses to which such
property is put and a description of the improvements which have been made
thereon, and should be accompanied by a statement of the title and rights
of the claimant thereto, supfXJrted by all existing documentary proofs of title.
Statements referring to claims of ownership to land or land under water,
together with accompanying documents should be filed in four copies, but
of the legal documents submitted as proofs, one copy only need be attested.
All other claims presented to the Commission should be filed in at least two
copies. All claims should be submitted on a form supplied by the Com-
mission. Such statements of claim and all other forms required by the Com-
mission can be obtained on and after March 14, 1913. from the secretary 6f the
Commission, at the se\'eral police stations in the Canal /one, or at the office
of the secretary of the municipal council of the City of Panama.
II. The statements above described to be presented by all claimants to pri-
vate property, should be filed with the secretary of the Joint Land Commis-
sion, National Palace, Panama, with as little delay as possible. Claimants
to land located in the area between Gatnn and Gamboa should file their
statements not later than March 31, 1913, and claimants to land located in the
remainder of the Canal Zone should file their statements not later than April
15, 1913.
III. Failure on the part of claimants to file the required statement will not
preclude the Joint Land Commission from acting upon all cases properly com-
ing before it, without the cooperation of the persons most directly interested.
IV". -After an examination of the pa^>ers filed with the Joint I^tnd Com-
mission, an opportunity will be given to all claimants to present further evi-
dence in public hearings. The Joint Land Commission reserves the right to
call upon claimants for further information and for documents supplementary
to those filed with the original statement.
V. The Commission will begin hearings upon claims which arc ready for
adjudication, relating to any lands, in the district between Gamboa and
Gatun, excepting townsitcs, on Monday, March 17, 1913,' in the Assembly
Hall, National Palace. Panama. Due notice of further hearings will be given
from time to time.
VI. Proceedings before the Commission may be instituted by the claimant
in person, or through his or her attorney in fact or agent. If the claimant is
represented by an attorney in fact or agent, a written declaration designating
the person to represent the claimant must be filed with the secretary of tht
21
38
11
Joint Land Commission. Claimants presenting such a declaration in person
should sign the same in the presence of the secretary. In aise sucli declarations
are not presented in person, the signature of the claimant should be attested in
the Republic of Panama, by a municipal official, or in the Canal Zone by the
agent in charge of any police station. Forms for the designation of attorneys
or agents can be obtained from the secretary' of the Commission, and within
the Canal Zone at the several police stations, and at the office of the secretary
of the municipal council of the City of Panama.
VII. All documents required by the Commission, as well as proceedings
before the Commission, may be in either Spanish or English.
Vm. With reference to the admissinility of evidence, the Commission will
follow the procedure of a commission of inquir>' rather than the technical
rules of evidence.
IX. If the claimant be an executor, administrator, guardian, or repre-
sentative appointed by a judicial tribunal, a duly authenticated copy of the
record of the appointment must be filed with the secretary of the Commission.
X. The Commission reserves the right to require that motions submitted
be put in writing. ~ _
XI. All expenses incident to the presentation of witnesses shall he paid
by the party at whose motion the witnesses app>ear.
XII. Upon the hling of claims, notice thereof will be served on the counsel
for the United States. The Conmiission will, in each case, fix a time for
the filing of an answer, and will then proceed to fix a time for hearing. Notice
of such hearing will be served on the claimant, or his representative, and on
counsel for the United States.
Such notice shall be signed by the secretary of the Commission and shall
recite the time when such cause shall be called for hearing and he served upon
the parties affected thereby by sending the same through the mail or otherwise,
as the Commission shall determine. Such notice so sent shall be deemed
sufficient notice to said parties, unless it shall later appear that it has not as
a fact been received; and, in that e\ent, further notice may be given, if it
appears necessary to the Commission.
XIII. .\t the time fixijd for the hearing (or at a later date, if so determined
by the Commission; any party possessing an interest in the. land or improve-
ments thereon may appear and enter a plea in writing, or orally, to be set
forth in the record, stating the nature and extent of interest, the amount of
damages, and any other matter which the party may desire to have considered
in the premises.
If more than one part> claiming damages shall appear, they may plead jointly
or separately as they may elect.
XIV. The counsel for the United States shall, at the time of the entry of
such pleadings provided for in Rule XIII, or later, if the Commission so
determine, file an answer in writing or verbally, to be entered upon the record,
joining issue in the premises. A copy of such answer shall be served. uix)n the
claimant or upon the attorney in fact, or agent.
XV. In all cases in which the claimant, or his representative, and counsel
for the United States are agreed on all questions of title, area, and boundaries,
a stated case may be presented to the Commission, which will enable the Com-
mission immediately to proceed to a hearing of the case and the valuation of the
proptTty.
XVI. In all public hearings, as preliminary, the claimant, or his repre-
sentative, will make a brief but substantial statement of the claim, in which he
will embrace the material facts which, in his opinion, are established by the
evidence. After the statement on behalf of the claimant, counsel for the
Government of the United States, will, in like manner make a statement of
the Ciovernment's position. Witnesses will then be called by the claimant
for direct ^wA cross examination, to be followed by witnesses for the Govern-
ment of the United States for direct and cro^s examination. The claimant,^ or
his representative, may then call witnesses in rebuttal, but the Commission
reserves the right to fix the time allotted to such rebuttal.
At the conclusion of the testimony, the claimant, or his representative, and
counsel for the Government of the United States will proceed to argue the
case in detail. .Argmnents will be limited to one-half hour on a side. In all
39
23
cases, however, 20 minutes will be allotted to counsel for the claimant for final
summing up. This limit of time may be extended by the Commission. When
additional lime is necessary on either side, application therefor must be made
in writing before the hearing begins.
XVH. If a claimant fails to appear after due notice has been given, the
Commission reserves the right to consider such evidence as may be available.
The claimant may. however, appear at any time prior to the final award.
XVI II. If the Commission, or a majority thereof, shall agree upon a decision
in any cause heard before it, it shall make the same a part of the record of the
proceedings and send a certified copy of the same to the Government of the
United States, and to the Government of the Republic of Panama, and any
party affected by such decision shall have a right to take a copy of the same.
XIX. in the event of a disagreement of the Commission, such disagreement
shall be certified to and forwarded to both of said Governments.
XX. Subp<x-nas, at the request of counsel for the United States, or of any
claimant or his representative, shall be issued by the, secretary of the Joint
Commission, which said subpoenas may be served by the police of either
Government. ...
XXI. Thes<' rules may be repealed or amended by the Commission at any
time hereafter as it may determine.
The Commission furthermore reserves the right to modify the application
of these rules to any particular case if, in the opinion of the Commission, the
interests of justice are promoted thereby.
Adopted March 18, 1913. ; . - ,
The Joint Land Commission will not take jurisdiction of claims arising from
leases or licenses of the Isthmian Canal Commission or the Panama Railroad
Company, which leases or licenses provide for the taking over of such proper-
ties for Canal or railroiul purposes U(X)n notice to tenant or licensee; this
being a matter of agreement between the parties antl governed by local law.
Adopted March 18, 1913.
In case of disputes between private land owners as to the limits of their
l>roperty, the Com'mission will, in a pro|X'r case, make a separate award for
the disputed territory, depositing the amount of such award with a court of
comjx'tent jurisdiction and leaving to such trif)unal the adjudication of the
rights of the se\cral claimants. The Commission will, however, undertake to
.determine questions of title as Vjetween the United States and private owners.
If, in the course of the adjudication of a claim, an adverse claimant to title
appear, the Conunission will deposit any award that may be made for such land
with a court of competent jurisdiction, and leave the adjudication of the rights
of adverse claimants to such tribunal. If, however, a lessee of private property
present an adverse claim for the value of improvements, the Commission will
make award to the holder of title for the value of the land and a separate award
for the value of improvements. The latter will be deposited with a court of
competent jurisdiction, where the respective claims of lessor and lessee will be
adjudicated.
Adopted March 24, 1913.
In determining the value of lands taken by the United States,thc Commis-
sion must Ix' governed by the terms of Article \'I, which provides:
"The appraisal of said private lands and private property and the assess-
ment of damages to them shall be based upon their value before the date pf
this convention."
In the application of the Treaty, the Commission will follow the principles
>)i the Commission of 1908, which are stated in their report to have been the
following:
40
24
"To hear all evidence presented bearing upon the fair value of the prop_-rty
to be expropriated by the United States, and upon damages thereto; to con-
sider especially, as elements of such valuation, the extent and character of
the property affected, its location, for what it is adapted or could be adapted
within a reasonable time; as well as to take into account other pertinent
considerations and, in determining the basis upon which damages are to be
assessed, to eliminate from consideration the effect which the building of
the Canal may have had upon the value of such estates."
Adopted June 3, 1913. / "
The Commission takes judicial notice of all official records of the Govern-
ment of the United States and of the Government of Panama pertaining to the
inquiries conducted by the Commission. The Commission will at all times
receive any papers or documents submitted by claimants or counsel relating
to or tending to controvert the content of such official records.
Adopted June 3, 1913.
In the matter of claims of corporations, it is the purpose of the Commis-
sion to make the award to such corporations, allowing persons who have an
interest or who own equities therein, to assert such interest or equities before
a court of competent jurisdiction.
Adopted June 11, 1913.
Where the existence of a release is pleaded in bar of a claim, the Commission
will of its own motion make an examination of the releases filed in the office
of the Examiner of Accounts and Disbursing Officer, and of such official records
the Commission will take judicial notice. Where a verbal agreement of settle-
ment is pleaded the claim will remain f>efore the Commission until the Com-
mission receive official notice that payment has been made by the Govern-
ment in settlement of such claim.
Adopted June 17, 1913.
Settlers or occupiers on public lands in the Canal Zone, who went upon such
lands prior to the Treaty of 1903 are entitled to compensation, and the fact
that such persons subsequently accepted licenses from the Government of
the United States does not extinguish the rights which accrued prior to the
treaty.
Adopted July 28, 1913.
In view of the provision of the treaty that "all the decisions by a majority
of the Commission or by the Umpire shall be final" the Commission is without
power to receive any protests against its awards.
Adopted June 9, 1914.
- When a case is set for hearing, and the claimant or the Government, or
defendant is not ready for trial at the time the case is set for hearing, the claim-
ant or the Government or their respective attorneys desiring that the cause
be continued or reset, shall file an affidavit in writing stating the reasons why
such party is not ready for trial, and, if the affidavit is found sufficient by the
Commission, then the case shall be taken off the setting and shall be put on the
call docket, to be called at the pleasure of the Commission after all the other
cases have been disposed of. The affidavit shall contain these words: "Thij
affidavit is made in good faith and not for the purpose of delay, but that justice
mav be done."
41
25 ;
Rules entered of record June 27, 1014, after adoption by the Governments of
the United States of America and the Kepublic of Panama:
• .... . . . •"
1. The jurisdiction of the Commission shall be invoked by petition of the
claimant, verified by his oath, or that of his agent, made before some officer
authorized to administer oatiis in the United States, the Republic of Panama
or the Canal Zone. ■■•>^;;..:
2. The Commission may designate two of its members, one from each coun- ■
try, to make inspections amJ to take e\'idence; but the decision shall be based
on all the evidence in the case and shall be made only by the Commission: and
in every case the Commission shall, upon the request of either party, grant a
full and free hearing. -
3. Claims not presented to the Commission within six calendar months after
it resumes its sessions at Panama shall be barred, unless the Commission shall
for exceptional reasons extend the time three months in a particular case.
Adopted August 18, 1914.
The time fixed by the Government of the United States and the Republic of
Panama within which claims may be filed with the Joint Land Commission
for damages-which have accrued to any person or persons, on account of the
construction of the Panama Canal and under the treaty between the United
States and the Republic of Panama, under Rule No. 3 lately adopted and as
amended by the two Governments will expire on December 27, 1914.
Adopted October 19, 1914.
'I
All pleadings, motions, and affidavits, for continuance shall be filed in writing
by the parties in interest, or their attorneys, and by the attorneys repre-
senting the United States (jO\ernment, in triplicate. The secretary shall
immediately upon receipt of such motions, pleadings, or affidavits, in triph-
cate, in accordance with this rule, mail to the attorney, or party of the opposing
side, one copy thereof. The motion, pleading, or affidavit shall then stand for
final disposition by the Commission at any time after five days from the date of
filing, unless hoth sides agree to its disposition at an earlier date.
Adopted October 24, 1914. '
The trial docket for claims to be heard by the Joint Land Commission shall
be made up of claiins in accordance with their numerical order on the docket
and their date of filing, regardless of their location on the Canal Zone.
Causes shall be set on each Monday afternoon for the following week and the
Secretary shall immediately cause notices of thesettings to be published in the
Star & Herald, the Panama Morning Journal. The Panama Canal Record,
and the Gaceta Oficial, and shall also mail or deliver copies of the setting to
the resp-:^ctive attorneys interested therein.
.All rules or parts of rules in contlict with this rule, are hereby repealed
annulled, and set aside.
Adoptee March 22, 191. S.
The Commission will not proceed to the hearing of claims in which there are
adverse private claimants. In all cases in which there are adverse private
claimants to the same property, they should either adjust tht»ir differences by
comfiromlso or settle them by adjudication before urging their claims before
the Commission.
42
26
Adopted October 2, 1915.
I. The claimant who first filed his claim with the Commission or whose clainf
has the lowest number on the docket will be treated primarily as the real owner
of the claim unless an adverse claimant proves to have a bona fide claim to the
whole or some part of the property taken for Canal purposes in conformity
with the provisions of the treaty of November 18, 1903.
I I. All persons having a claim in conflict with the rights asserted by previous
claimants shall present evidence within a term to be fi.\ed in each case by the
Commission in order to show that such conflicting rights are in course of being
decided by a competent tribunal of the Canal Zone or by arbitrators or by
direct amicable settlement.
III. The evidence required by the Commission for the al)ove purpose shall
be a certified copy of the complaint or judicial proceedings brought by the
_ second claimant against theclaimant who has the lowest number on the docket,
oracopy of theact whereby the case was submitted to arbitration, or a showing
that an amicable settlement will be reached within a reasonable time.
IV. If, within the term fixed by the Commission, no evidence is produced to
show that proceedings have been instituted in order to have the controversy
properly decided or settled as above set forth, the Commission shall direct
that the claim first filed be heard and final decision shall be rendered on its
merits. •
V. The preceding rule is set down without prejudice to the right of private
individuals or corporations to institute whatever proceedings may be allowed
by law in order to recover, from parties in whose favor any award has been
rendered, such moneys as may have been paid them by the United States
according to the award as a compensation for land or property taken for Canal
purposes and belonging to such private individuals or corporations.
Rules relative to the continuance or dismissal of cases, adopted
April 13, 1916, after approval by both Governments:
. It is ordered that when a case is set for hearing, and the claimant is not ready
for trial when his case is called and the claimant or his attorneys desire that the
cause be continued or reset, he shall filean affidavit in writing, stating the reasons
why such party is not ready for trial, and, if the affida\ it is found sufficient by
the Commission the case shall be put on the call docket to be called at the
pleasure of the Commission, or placed at the fo(.)t of the docket to be called
after all other cases have been disposed of.
If the affidavit is not considered sufficient by a majority of the Commission
to entitle the claimant to a continuance, or in case no affidavit for a continu-
ance is filed, a rule of default shall be entered against the claimant.
Upon the entry of such rule of default (at the end of each month) notice there-
of shall be given by four successive publications, one each week, in the English
and Spanish languages in newspapers of general circulation in the Republic of
Panama, notifying such claimants to appear in person or by attorney, within 60
days from the first of said publications and show good and sutficient cause why
such- default should be set aside, and take active steps to prosecute their claims,
and failing to so appear within 60 days from said first publication their claims
will be considered as having been either settled or abandoned and the same
will be dismissed and forever barred.
Adopted April 18, 1916.
All oral arguments of claims and other mitters coming before the Joint Com-
mission appointed under .'\rticles VI and XV of the Treaty between the United
States of America and the Republic of Panama, signed November 18, 1903,
for the adjudication and settlement of damages to private property caused
by the construction, operation, sanitation, etc., of the Panama Canal, will be
limited to one hour on a side, including the opening and closing arguments.
When additional time is desired by counsel for either side in a particular case,
a requcit therefor must be made to the Commission Ix-fore the argument li
43
27
begun, counsel stating clearly the grounds on which the request is based. On
a proper showing being made, the Commission may, within its discretion, extend
the original time limit. Any rules conflicting with the above arc hertby
repealed and annulled.
Adopted May 4,1916.
Disagreements shall becertiiied to the "Umpire appointed under the treaty,"
instead of to the "Governments, parties to the treaty." Before the certifica-
tion of any case to the Umpire, the conclusions reached by the commissioners
shall be stated in writing and shall be supported by written opinions, all of
which shall form a part of the record certified to the Umpire.
Adopted June 30, 1916.
When the Commission shall certify a case to the Umpire under the pertinent
provisions of the Treaty of 1903 between the United States and Panama the
fact of such certification shall be announced in open court, and the Secretary
of the Commission shall forthwith notify the parties interested through their
attorneys that such certification has been perfected. Counsel shall be allowed
ten days from the date of such notification to file with the Commission such
brief or written argument as the\' may see fit. which brief or written argument
shall be attached to the record and form a part thereof when the papers in the
case- are submitted to the consideration of the Umpire.
45
r ilT-> f >
APPENDIX "B
Statement of Claims Filed with the Joint Commission
Showing Disposition Thereof.
Symbols indicating Commissioners acting on claims.
A =RlCARDO J. Alfako.
Ar =Ramox Arias F.
B =Federico Boyd.
Bd = Jorge E. Boyd.
Bv = Clement L. Bouve.
C = Nicholas Cornet.
Cy = George A. Connolly.
F =JULIO J. Fabrega.
Fk = Roland P. Falkner.
K =Levi M. Kagy.
L =Samuel Lewis.
M = David Marks.
N = Burt New.
R =Leo S. RowF..
S = H. A. A. Smith.
29
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II. BOUNDARIES
ANALYSIS
■treatils ano
agreements page
1, Provisional Boundary Agreement — Panama 1904 ....... 397
3. Boundary Convention — Panama 1914 401
5. Colon Corridor and Certain Other Corridors — Panama 1950 .... 411
Other agreements affecting boundaries. In addition to those set out below,
under this heading "Boundaries", the following, all set out elsewhere in this
Appendix, contain provisions affecting or relating to boundaries:
1. Convention for the Construction of a Ship Canal, Panama, Nov. 18, 1903.
See App. Ill, Canal Construction and Rights.
2- General Treaty of Friendship and Cooperation, Panama, March 2,* 1936.
See App. IX, General Relations.
3. Treaty of Mutual Understanding and Cooperation, Panama, January 25,
1955. See App. IX, General Relations.
See, also, note under section 1 of Title 2, Canal Zone Code.
1. Panama — 1904
PROVISIONAL BOUNDARY AGREEMENT^
(Davis — Arias Agreement)
informal provisional delimitation of the
boundaries of the canal zone
(See 1904 Ann. Rept. 78 and 91-93)
Signed at Panama June 15, 1904
(Senate Doc. No. 401, 59th Cong., 2d Sess., Vol. Ill, p. 2300)
SECTIONS
1. Limits of Canal Zone; provisional 4. Special agreements respecting de-
acceptance, limitation of auxiliary l.irds or
2. Limits of city and harbor of waters.
Panama; provisional acceptance. 5. Employment of Panamanian citi-
3. Limits and harbor of Colon; pro- zens resident in Republic.
visional acceptance.
l§ 1] Whereas, By the terms and provisions of Article 11 of the
Convention for the Construction of an Jnterocoanic Canal between
the United States of Anierica and Ihe Republic of Panama, signed
'This agreement fivas superseded by the Boundary Convention of Septem-
ber 2, 1914. See § 31 et seq., post. See, also, note under section 1 of Title 2,
Canal Zone Code.
397
126
App. I! [§ 1] BOUNDARIES
by the representatives of the two nations on November 18, 1903-,
the ratifications of which were exchanged at Washin^on on the
26th day of February, 1904, the United States acquired the right of
use, occupation, and perpetual control, from and after the said
26th day of February, 1904, in and over the Canal Zone and other
lands, waters and islands named in said Article II of the Convention
aforesaid, and
Whereas, It has not yet been, and is not now, practicable to make
a complete, definite, and exact location of the precise boundaries
of all the territory ceded to the United States by the terms and
provisions of said Article II of said Convention, and
Whereas, The successful completion of the work of construction
of the Interoceanic Canal across the Isthmus of Panama is of
transcendent importance to the United States, to the Republic of
Panama, and to the people of the world, and
Whereas, In order that said work of construction of said Inter-
oceanic Canal may be systematically prosecuted, and in order that
a Government for the Canal Zone created by the terms and pro-
visions of said Article II of said Convention may be successfully
organized and carried forward, it is necessary that the extent and
boundaries of the .territory ceded to the Government of the United
States by the Government of the Republic of Panama under the
terms and provisions of said Convention shall be provisionally
determined and agreed upon,
Now Therefore, General George W. Davis, Governor of the
Panama Canal Zone, acting for and on behalf of the Government
of the said Zone, and Senor Don Tomas Arias, Secretary of State
of the Republic of Panama, and Senor Don Ramon Valdes Lopez,
Attorney General of said Republic, jointly acting for and on behalf
of the Government of said Republic of Panama, having agreed that
the Government of the Republic of Panama has delivered, and the
Government of the United States has received, and had, on tiie
19th day of May, 1904, received, for its use, occupation, and con-
trol, the Isthmian Canal Zone described in said Article H, of the
aforesaid Convention for the Construction of an Interoceanic Canal,
including lands and waters in the said Zone, lands under water,
islands in said Zone, and the islands of Perico, Naos, Culebra and
Flamenco, do make this further
»For Art. II of the 1903 Convention, see App. Ill, § 63.
898
127
PROVISIONAL DOUXDARY AGREK. — 1901 App. II [§ 4]
AGREEMENT.
[§ 2] Sec. 1. Tl:c limits of tlic Canal Zone, including lands under
•vvaier and islands cpded, but not including the cities and harbors
of CoTon "and Panama, delivery of which lands, waters and islands
has been m;ule by Panama, and po.s'^e.gsion of which has been taken
by the ynitp.d Rtatos, are indicated and shown on the attached map
(marked "A'')S^signed by the parties to this Agi-eement, as
accurately as it is possible to indicate on a map with the existing
information respecting the topography of the region traversed by
the Canal, by a heavy red line crossed with black, and drawn at
the uniform distance by scale of five statute miles on each side of
the middle line of the Canal, and said indicated boundary, or line
of division, between the territory ceded by the Republic of Panama
to the United States for Canal purposes and the adjoining- or
abuttinglands of the Republic of Panama is provisionally accepted,
and will be strictly observed by the two Governments until the
limits or boundaries of the said Zone, waters and islands shall be
d'^finitely and finally marked, fixed and determined.
[§ 3] Sec. 2. The limits of the city and harbor of Panama, as
indicated and shown by a heavy red line crossed with black on the
attached map (marked "B")*, and as described on the paper
attached to the said map, both of which are signed by the parties
to this Agreement, are provisionally accepted and will be strictly
observed by the two Governments until the true and definite line
of division between the Canal Zone and its waters, on the one hand,
and the city of Panama and its harbor, on the other, shall be finally
surveyed, marked off, fixed and determined. PROMDED, that
the outer or marine boundary of the harbor of Panama shall, as
soon as practicable, be agreed upon and marked with buoys or other
monuments.
[§ 4] Sec. 3. The limits of the city and harbor of Colon, as indi-
cated and shown by a hea\'y red line crossed with black on the
attached map (marked "C")*, and as described in a paper attached
to said map, both of which are signed by the parties to this Agree-
ment, are provisionally accepted and will be strictly observed by
the two' Governments until the true and definite line of division
between the Canal Zone and ite waters, on the one hand, and the
"The map referred to was not reproduced. Presumably, it will be found
with tl)e original agreement.
^Same as footnote S^ante,
*Same as footnote 3, ante.
399
128
App. II [§ 4] BOUNDARIES
city of Colon and its harbor, on the other, shall be finally surveyed,
marked ofT and determined.
[§ 5] Sec. 4. As necessity may arise, special agreements will be
made and entered into from time to time by the parties hereto or
by their successors respecting the delimitation of any auxiliary
lands or waters outside the Canal Zone which may be found to be
necessary or convenient to the construction, sanitation, or pro-
tection of the Interoceanic Canal or of its auxiliary works.
[§ 6] Sec. 5. The Governor of the Canal Zone, or his successors,
may employ the citizens of the Republic of Panama residing in the
territory of the Republic, for which purpose the Government of
the Republic gives them the permission mentioned in paragraph
two of Article 7 of the National Constitution.
• In Witness Whereof, We have signed these presents in the city
of Panama, this 15th day of June, 1904.
Geo. W. Davis
Governor CanaLZone
ToMAS Arias
Secretary of State
Republic of Panama
Ramon Valdes Lopez
Attorney General
Republic of Panama
^^ cc^^ "Jr^
cw
400
Staff Report Regarding Property Records in the Custody of the
United States District Court for the District of the Canal
Zone
introduction
At the request of Chairman Allen, this report -svas prepared by the
staff of the Subcommittee on Separation of Powers with the advice
and assistance of James Senj^, records management officer of the Ad-
ministrative Office of the United States Courts. This report is in-
tended to clarify the record-keeping system which was in effect in the
Canal Zone during the time that the United States purchased the fee
simple interest in the lands which comprise the Zone. The records
Avhich compose this land record system are presently under the care
and subject to the direction of their legal custodian, Miss Doris L.
McClellan, who— as Clerk of the Court, United States District Court
for the District of the Canal Zone — is the successor in function to
the Clerk of the Court, First Judicial Circuit of the Canal Zone in
whose care and custody the records were originally placed. ^liss Mc-
Clellan obtained temporary storage space for the records of the Dis-
trict Court at the offices of the Administrator of the United States
Courts at 1811 Vermont Avenue, N.W., Washington, D.C. The loca-
tion of the records in Washington where they are easily accessible
to the Congress is advantageous in the event any further question
should arise concerning the fee simple interest of the ITnited States in
the lands comprising the Zone.
Record-Keeping System
components
The United States District Court for the District of the Canal Zone
is the successor in function to the Judicial Circuits of the Canal Zone.
The Clerk of Court, First Judicial Circuit of the Canal Zone, was
designated "the Registrar of Property of the Canal Zone" ^ and re-
quired to maintain an official record copy of all deeds affecting im-
movable property within the Canal Zone. The form and substance of
this record system was extremely detailed and required the mainte-
nance of several indexes to serve for cross referencing purposes.-
These individual components of the system could be maintained only
by a single office because the svstem reouired manual enti'ies in diJF-
ferent volumes which bore record to different sequences of informa-
tion.^
"■ Kxecutlve Order No. 8 Issued hv President William H. Taft on February 2. 1911.
= Executive Order Xo. S. Articles 2. 8, 5. 6. 7. S. 9. 10. 11. 12. l.S.
•" Sequenced numerically by instrument number, or alphabetically by grantor and by
grantee indexes.
(129)
130
The present Panama Canal Company is the successor in function to
the Land Office of the Canal Zone. The Land Agent in charge of the
Land Office Avas designated as the custodian of the original deeds to
lands purchased by the United States in the Canal Zone.^ The Land
Agent also assumed custody over the land records of the Panama
Railroad Company inasmuch as that company and its assets also
became the property of the United States.^ The Land Agent super-
vised United States lands in the Zone to prevent unauthorized intru-
sions and assisted the head of the Department of Law of the Panama
Canal Company in all matters related to the investigation of land
claims and land titles. The Land Agent also had responsibility for in-
suring that deeds vesting a fee simple interest in the United States
and related property transactions were all properly recorded at the
L^nited States District Court for the Panama Canal Zone — or, more
properly, at its predecessor in function, the First Judicial Circuit of
the Canal Zone.
PROCESS
The method of executing and recording deeds was set forth as a
judicially oriented function by Executive Order No. 8 which provided,
in Article 17 :
A copy of any instrument duly recorded under the provi-
sions of this order and certified to by the Registrar in charge
of the record, may be used in evidence in any judicial pro-
ceedings in like manner and effect as might be done with the
original if produced . . .
Thus, each conveyance of immovable property (i.e. reality and fix-
tures) was required to be done only by written instrument acknoAvl-
edged by the grantor before a judicial officer authorized to issue certifi-
cates of acknowledgment, whicli certificates also verified that the
official record copy of the particular conveyance instrument had been
properly and duly filed with the Registrar of Court.*^
In the early stages of the United States land purchases in the Canal
Zone, the filing stage of the process required a scribe in the Registrar's
office to transcribe manually in handwriting the entire text of each
instrument validly executed.'' Later, the transcription was typewritten
on pages which were ultimately bound in hardback, leather-bound
volumes. The Registrar also made a line entry in a separate docket
book to insure the integrity of the record system.^ This stage of the
filing process was completed by the issuance of the certificate of
acknowledgment which was attached to the original instrument re-
tained by the grantee as proof of title. Thus, presumably, the only
remaining private land owner in the Panama Canal Zone, the Sojourn-
ers Lodge of the Ancient Free and Accepted ]Masons, has in hand a
deed from the Panama Railroad Company (owned by the United
States) granting fee simple title to four lots located in the town of
Cristobal, Canal Zone. This conveyance, done in 1921, inasmuch as it
» Exepiitivp Order No. 7 issued by President William H. Taft on January 19, 1911.
5 Ibid, Section .">.
» Executive Order No. S, Article 1.
'' Executive Order No. 8, Article 5.
8 Executive Order No. S, Article 6.
131
involved public lands, was anthorizod in advance by Act of Congress.^
However, in the event that a grrantee could not produce the original
instrument, the transcribed copy on file with the Refjistrar can serve
in like manner and etl'ect as the original.^" Therefore, the title of the
United States to all of the lands in the Canal Zone (with the exception
of the four lots which belong to the jNIasons) is established either by
referring to the original deed or to the recorded copies. Either method
is legally sufficient to establish good title. Additionally, no deed, even
if properly executed, can be considered perfected unless the deed was
duly recorded in the office of the Registrar.^^
Authenticity
physical
The physical substance of the paper records presented to the Sub-
committee at the hearing conducted on March 11, 1978, has survived
the years very well considering the hot, humid climate of the Canal
Zone where the records Avere stored until 1975. The deteriorated leather
binding and the discolored ink leave no doubt as to the physical sub-
stance being authentic. At the suggestion of Mr. Seng, the staff notes
that these property records do not appear to warrant a chemical
analysis of fragments because they are relatively recent, historically
speaking. However, visual comparison with similarly constructed court
records from the early 1900's confirms that the deterioration observed
is typical for the area.
FORMAL
These property records exhibit the form and style identified by the
Executive Order establishing the record-keeping systems. There are
four separate types of records which reflect the required entries made
in the office of the Registrar : (1) Record of the Property of the Canal
Zone, (2) File Docket, (3) Grantor Index, and (-4) Grantee Index.
The chronological sequence of the docket entries confirms the instru-
ment sequence of the property record. ^Moreover, the grantor and gran-
tee indexes, as direct and cross alphabetical reference tools, confirm
the formal authenticity of the official property record.
Access
original deeds
The original deeds, together with their certificates of authenticity,
should be in the custody of each of the original grantees. Inasmuch as
the ultimate grantee in all cases (except the Masonic lots) is the
United States, the chain of title to any tract of land in the Canal Zone
ends with a deed vesting title in the United States. The implementing
Executive Order stipulates that the Land Agent in charge of the Land
Office of the Canal Zone is the custodian of the deeds, maps, and records
9 PL 250, 66th Congress, H.R. 6222, approved June 5, 1920.
1° Executive Order No. S, Article 17.
" Executive Order No. 8, Article 13.
132
l)ortaininp; to lands owned by tlie United States.^- The Panama Canal
Toinpany inherited these records as successor in function to the Land
Office of the Canal Zone.^'^ Access to these records can be initiated by
contactinii- tlie Panama Canal (^ompany or l)v contactino; the Archiv-
ist of th(> United States in the event that the Panama Canal Conij^any
has already transferred the records to the Archivist under the appli-
cable statute.^' These records ^^' should not be disposed ^" prior to any
dispositiou of public lands comprisino; the Canal Zone.^' In the event
these records have been destroyed eitlier by the Archivist or by the
Paiuima Canal Company, the only authentic record which survives
would then be the official record of the Registrar of Court, which is an
equally valid ]noof of title.
OFFICIAL RECORD
The official record of the Registrar of Property of the Canal Zone
is in the legal custody of the Clerk of Courts, United States District
Court for the District of the Canal Zone.^^ As evidenced by the Order
of the District Court of the Canal Zone pursuant to which access to
the records was obtained at the Subcommittee hearing on ^Nlarch 11.
1978, access to the property records of the Court is properly initiated
by contacting the District Court which can arrange for revievr of its
records by the public or by the Congress. Since the official record of
the District Court must be presumed to be the only known proof of
the United States fee simple interest in the lands comprising the Canal
Zone, extraordinary care must be taken to protect the records of the
Court. Because federal law prohibits the destruction of these records,
the official records must be safeguarded by the court. ^^ The District
Court has to date performed this function well, and there is no reason
to suppose that the records will now be lost or destroyed. Nevertheless,
because the matter of the disposition of public lands in the Canal
Zone is presently before the Congress (the proposed Panama Canal
Treaty and H. Con. Res. 347), the temporary location of the records
in "Washington in the physical custody of the Administrative Office
of the United States Courts is desirable pending the final outcome of
the legislative issue and pending such further record disposition as the
United States District Court for the Canal Zone might deem
appropriate.
'- Kxpontive Ordpr Xo. 7. Section 2.
I'i Summarv provided to the Subcommittee staff by the Panama Canal Company on Marcli
17, ]!)7S.
"44 T'.S.C. 2103.
15 44 Tl.S.C. .S:i01.
^44 TT.S.C. 830S.
1" Article IV, Section ^. Clause 2 of the Constitution.
i"* Testimony of the Clerk of Court, United States District Court for the District of the
Canal Zone before the Subcommittee on Marcli 11, 197S.
i!'2S U.S.C. 1730(b).
133
MICROFILM
The Subcommittee has in its possession a complete microfihn copy
of all the records of the US. District Court for the Canal Zone
through 1955. The staff has examined the microfilm records in detail
and finds a variety of warranty deeds, quit claim deeds, and othei;
conveyance instruments vesting title to real property in tlie Zone in
the United States of America as grantee. In some instances, it appears
that the United States (or an agent of the United States, such as the
Isthmian Land Commission, the Panama Railroad Company, or the
Panama Canal Company) may have paid several times over for the
same tract of land in order to insure good title. The records clearly
show that a concentrated effort to extinguish all private land titles (or
claims of title) and vest in the United States a fee simple interest in
all real estate in the Canal Zone occurred in the years immediately after
1912 when President Woodrow Wilson, acting under specific authority
of the Panama Canal Act of 1912, ordered the acquisition by the
United States of fee title to all lands in the Zone.^°
SAMPLE DEEDS
In accordance with the order of the Chairman, hereafter follows a
representative sample of types of instruments of conveyance by wdiich
the United States, as grantee, purchased its proprietary land rights
in the Isthmus of Panama.
-» Execuive Order of the President of the United States dated December ."), 1912.
Instrument No. 18
Know all men by lliese presents That I, Maria Concepcion Sosa, resident of
Panama. Republic of Panama, for and in consideration of the sum of fifteen
thousand dollars (."flo.OOO) lawful money of the United States, (with interest
on same of 6% from 8th August, 1908, until date payment is tendered by the
Isthmian Canal Commission) to me in hand paid by the Isthmian Canal Com-
mission, the receipt of which is hereby acknowledged, have granted, bargained,
sold, received, and forever released and quit-claimed, and liy these presents do
grant, bargain, sell, remise, and forever release and quit-claim to the said Isthmian
Canal Commission the seventeen (17) hectares of the estate known as "Gavilan
y Gavilancito" and appropriated by the Joint Commission, appointed under the
provisions of Articles VI and XV of the Treaty between the United States of
America and the Republic of Panama, Mr. Edwin Denby, Chairman, together
with all rights, claims, household interests and demands of whatever nature,
thereto appertaining :
To have and to hold the above described lands of the "Gavilan y Gavilancito"
assets, together with all rights, claims, leasehold interests, and demands of what-
ever nature, thereto appertaining, unto the said Isthmian Canal Commission,
their successors, administrators, and assigns forever, and I, Maria Concepcion
Sosa, do vouch myself to be the true and lawful owner of the above seventeen
(17) hectares of the "Gavilan y "Gavilancito" estate, and to have in myself
full i)ower, good right and lawful authority to dispose of the said land and all
interests thereto appertaining in the manner as aforesaid, and I do hereby
for myself, my heirs, administrators, executors and assigns, covenant and agree
to warrant and defend the said lands and leasehold interests thereunto ap-
pertaining unto the said Isthmian Canal Commission, their successors, adminis-
trators and assigns, against the lawful claims and demands of all persons
whatsoever.
In witness whereof, I Maria Concepcion Sosa. have hereunto set my hand
and seal, this 21st day of August 1908.
(Signed) Maria C. Sosa.
Signed, sealed and delivered in presence of :
Witnesses to signature and execution .
Personally appeared before me, the undersigned, Maria Concepcion Sosa.
whose name is subscribed to the foregoing instrument in writing and acknowledged
the same to be her voluntary act and deed ; and I certify that the .said instrument
in writing was read and fully explained to the said Maria Concepcion Sosa at
the time of acknowledgment.
In testimony thereof, I have hereunto set my hand and affixed my official seal,
this 21st day of August, 1908.
(Signed) Walter Emery,
Clerk of the Circuit Court for the 1st Judicial Circuit, C.Z.
Filed for record, August 21st, 1908, at 3 o'clock P. M.
(Signed) Walter Emery,
Registrar.
Instrument No. 23
Know all men by these presents. That I, Jose Gabriel Duque, a resident of
Panama, Republic of Panama, for and in consideration of the sum of one thou-
sand dollars ($1,000.00) lawful money of the United States (with interest on
same of 6% from fith August, 1908. until date payment is tendered by the
Isthmian Canal Commission, to me in hand paid by the Isthmian Canal Cnmniis-
sion, the receipt of which is hereby acknowledged, have granted, bargained, sold,
remised, and forever releeased and quit-claimed, bey these presents do grant,
(135)
136
bargain, sell, remise, and forever release and quit-claim to the said Isthmian
Canal Commission the one (1 ) liectare of the estate known as "San Lazaro," and
appropriated by the Joint Commission, appointed under the provisions of the
Articles VI and XV of the Treaty between the United States of America and the
Republic of Panama, Mr. Edwin Denby, Chairman, together with all the rights,
claims, leasehold interests and demands of whatever nature, etc. appertaining :
To have and to hold the above described lands of the "'San Lazaro" estate,
together with all rights, claims, leasehold interests and demands of whatever
nature, thereto appertaining, unto the said Isthmian Canal Commission, their
successors, administrators, and assigns forever, and I, Jose Gabriel Duque, do
vouch myself to be the true and lawful owner of the above one (1) hectare of
the "San Lazaro" estate, and to have in myself full power, good right and lawful
authority to dispose of the said land and all interests thereto appertaining in the
manner as aforesaid, and I do hereby for myself, my heirs, administrators, execu-
tors and assigns, covenant and agree to warrant and defend the said lands and
leasehold interests thereunto appertaining unto the said Isthmian Canal Com-
mission, their successors, administrators and assigns, against the lawful claims
and demands of all persons whatsoever.
In witness whereof, I, Jose Gabriel Duque, have hereunto set my hand and
seal this 15th day of September, 1908.
(Signed) J. Gabriel Duqxte.
Personally appeared before me, the imdersigned, Mr. Jose Gabriel Duque,
whose name is subscribed to the foregoing instrument in writing and acknowl-
edged the same to be his voluntary act and deed; and I certify that the said
instrument in writing was read and fully explained to the said Jo.se Gabriel
Duque at the time of acknowledgement.
In testimony whereof, I have hereunto set my hand and affixed my official seal
this 15th day of September, 1908.
(Signed) Walter Emery.
Clerk of f'ircuif Court for ihr l.sf
Jtidicial Circuit. C. Z.
Filed for record, Sept. 15, at 3 :16.
Instrument Xo. 16
DEED OF SALE
Crlstobal. C. Z., September 11, 1907.
This is to certify that I. Mauuela Pimienta, have this day sold to the Panama
Railroad Company, or at the Rail Road Company's election, to the Isthmian
Canal Commission, my house, Xo. 74, in the village on the Correoso Island at
Gatun, Canal Zone (on the left bank of the Chagres River) for the sum of One
Hundred and Forty Dollars (1-10.00) U.S. Gold; also the lot on which said house
stands, which lot measures 30 meters by 8 meters, or a total of 240 .square meters,
for tlie sum of Six Hundred Dollars (.$000.00) U.S. Gold (which is the equiva-
lent of the price, vis ; .$960 Colombian Silver, for which I purcliased said lot from
Gen. B. Correoso on ^lay 19, 1891. at the rate of exchange (60% premium) ruling
at that time) and also, that I have received these amounts, or say a total of
Seven Hundred and Forty Dollars (.$740.00) U.S. Gold, this day from the Ca.shier
of the Panama Railroad Company and I hereby agree to deliver up possession of
said house and lot to the Panama Rail Road Company for the Isthmian Canal
Commission, from today. I liereby waiving all furrber claims in connection with
."^aid house and lot.
This is al.so to certify that I have this day delivered to the Panama Railroad
Company my title deed from Gen. Correoso of May 19. 1891. for the purchase of
said lot from him, joinily I)y my.self and my husband, Jose Mulct, who died over
14 years ago. leaving me in full possession of the lot. the house on which I had
acquired on March V2. 1.S88. liy purfha.se. for the sum of Two Hinidred Dollirs
($200.00) Colombian Currency, from .said Jose Mulet, the title deed for which I
have today .surrendered to the Panama Rail Road Company.
137
I further declare that I have siveu notice to the occupants of the above men-
tioned house to vacate same at once, or, at latest, within tifteen (15) da.vs from
tlii.s date, so that, after the expiration of this period the Panama Rail Road Com-
pany or Isthmian Canal Commission can proceed with the removal of the demoli-
tion of said house.
AVitness :
(Sgd.) Jose F. Gutierres.
( Sgd. ) MaNUELA ^ X PiMIENTA.
UNITED STATES OF AMERICA, CAXAL ZONE, THIRD JUDICIAL CIRCUIT
Before me. Nelson R. Johnson. Clerk of the Circuit Court. Third Judicial Cir-
cuit, Canal Zone, personall.v appeared the al)nve named Maiiuela I'imienta. known
to be the per.son, and acknowledged that she executed the foregoing instrument
of her own free will and accord.
In Witness Whereof, I have hereunto affixed my signature and the .seal of
Ihe said court this 17th day of Septemlier, A.D. 1907.
(Sgd) Nelson R. Johnson,
Clcrl: of the Circuit Court,
Third Judicial Circuit,
Canal Zone.
[seal]
Fee $.40 Paid. Filed for record December 10, 1907 at 9 :30 A/M
Nelson R. Johnson.
Instrument No. 115
Know all men by these present. That I, Rafael Bargas, for and in considera-
tion of the sum of One Dollar ($1.00), lawful money of the United States to me
in hand, paid by the I'anama Railroad Company, receipt whereof is hereby
acknowledged, have granted, bargained, sold, remised, and forever released and
quit-claimed, and liy these presents do grant, bargain, sell, remise, and forever
release and quitclaim to the United States of America any and all my right, title,
and interest whatsoever in and to the following described property acquired
ii.v lease or purchase from Genl. Correo.se or others to-wit :
That piece or parcel of land Hou.se on Lot 37 D-(99) situated in the old
village of Gatun described and designated on the Panama Railroad Company's
map (if said old village of Gatun as Lot 37 D-(99).
To have and to hold the above designated and deseribetl property together with
all rights, claims lease-hold interest and demands of whatsoever nature apper-
taining thereto unto the .said United States of America, its successors, or assigns
forever ; I do hereby for myself, my heirs, administrators, executors, and as-
signs, covenant and agree to warrant and defend the said property unto the
United States of America, its successors, or assigns against the lawful claims
and demands of all iiersons whomsoever and I do hereby likewise release and
surrender any and all claims for actual or consequential damages to the said
estate which may have heretofore been caused or claimed by reason of the
action of the Isthmain Canal Commission, the Panama Railroad Company, or
any of their agents, servants, or employees.
In Witness Whereof, I, Rafael Bargas have hereunto set my hand and seal,
this 12th day of January, 1909.
Signed, sealed and delivered in the presence of :
(Sgd.) Rafael Bargas.
(Sgd.)" A. C. Greenwood.
(Sgd.) R. H. Wardlaw.
united states of AMERICA, CANAL ZONE, THIRD JUDICIAL CIRCUIT
Personally appeared before me this 12th day of January 1909, the above-
named Rafael Bargas to me known to l)e the person therein mentioned, and
who executed the foregoing instrument, and acknowledged the same to be his
free act and deed.
^ Her mark.
138
In Witness Whereof, I have hereunto set my hand and affixed my official
seal, this 12th day of January, 1909.
Nelson R. Johnson,
Clerk of the Circuit Court,
Third Judicial Circuit.
[seal]
Filed for record January 13th, 1909 at 8 :02 A.M.
No fee.
Nelson R. Johnson,
Registrar.
Instrument No. 198
Know all men by these presents, That AVe, Victoria and Juana Paula Rod-
riques, joint owners of the following; described property, with whom join B. B.
Duncan, aierent of the said grantors, in ratification of the verbal agreement here-
tofore made with Richard Reid Rogers, General Counsel of the Isthmian Canal
Comniisslon, and in consideration of the payment to us of One Thousand
($1,000.00) I".S. Currency, receipt whereof is hereby acknowledged and accepted
in full payment of the amount due under the stipulations of the aforesaid agree-
ment, have granted, bargained, sold, remised, and forever released and (piit-
claimed. and by these presents do grant, bargain, sell, remise, and forever release
and quit-claimed, and by the.se presents do grant, bargain, sell, remise, and for-
ever release and quit-claim to the United States of America all our right, title and
interest whatsoever is and to that part or portion of the lands known as Vamos
Yamos which lies below the topographical contour line of 87 feet elevation above
mean sea-level, the said lands of Vamos Vamos being situated within the Canal
Zone between the lands known as Ahorca Lagarto and Penas Blancas Abajo, as
more particularly described in an agreement of delimitation, of date Decem-
ber 26th, 1908. recorded and filed in the land records in the Office of the Clerk of
Third Circuit Court at Cristobal.
The grantors hereby agree that on the completion by the Isthmian Canal
Commission of a map setting forth approximately the boundaries and area of
that part of the lands known as Vamos Vamos, lying below the 87 foot contour
as herein conveyed, said map marked "Schedule A" and signed by the grantors
shall be attached to and become a part of this deed, it being understood that the
Isthmian Canal Commission luidertaken to cut a trocha more definitely marking
the boundary line of the lands of Vamos Vamos and those of Penas Blancas Abajo.
To have and to hold the above designated and described lands together with
all rights, claims, lease-hold interests, and demands of whatsoever nature ap-
pertaining thereto unto the said United States of America its successors, or
assigns forever: we do hereby for ourselves and for our heirs, administrators,
executors and assigns convenant and agree to warrant and defend these lands
unto the United States of America, its successors and assigns against the lawful
claims and demands of all persons whomsoever; and we do hereby likewise
release and surrender any and all claims for actual or consequential damages to
said lands which may have heretofore been caused or claimed by reason of the
actions of the Isthmain Canal Commission, the Panama Railroad Company, or
any of their agents, servants or employes.
In witness whereof, we Victoria Rodriguez, Juana Paula Rodriguez and B. B.
Duncan, agent, have hereunto set our hands and seals this 23rd day of January
1909.
(Sgd.) J. P. Rodriguez [Seal].
(Sgd.) Victoria ^ X Rodriguez [Seal].
(Sgd.) B. B. Duncan Agt. [Seal].
Signed, sealed and delivered in the presence of :
(Sgd.) Castulo Beleno.
(Sgd.) Theo. C. Hinckley.
United States of America, First Judicial Circuit. Canal Zone
Personally appeared before me this 23rd day of January the above-named
Victoria Rodriguez, Juana Paula Rodriguez, and B. B. Duncan to me known
by representation to be the persons therein mentioned and who executed the
foregoing instrument and acknowledged the same to be their fi-ee act and deed.
^ Her mark.
139
In Witness Whereof, I have hereunto set my hand and affixed my official
seal, this 23rd day of January.
(Sgd.) Walter Emery,
Circuit Court Clerk.
[SEAL]
Received and examiner February 1, 1909 of accounts.
Filed for record April 28th 1909 at 4 :36 p.m.
No fee.
Instrument No. 199
Received, examined, April 2, 1909 of accounts.
Know all men by these presents. That, The Columbian Fruit Company, Ltd., by
R. Yung, of the city of Colon, Republic of Panama, its agent thereunto duly
authorized, in ratification of the agreement heretofore made with Richard Reid
Rogers, General Counsel of the Isthmian Canal Commission, of date June 6th,
1908. and in consideration of the payment to it of the sum of Thirteen hundred
and forty-six Dollars and fifty cents ($1,346.50) United States Currency, receipt
whereof is hereby accepted and acknowledged in full payment of the amount due
the said grantor under the stipulations of the aforementioned agreement, have
granted, bargained, sold remised and forever relea.sed and quit-claimed and by
these presents do grant, bargain, sell, remise and forever release and quit-claim
to the United States of America all of its right, title and interest whatsoever in
and to that part or portion of the lands .situated in the Canal Zone upon the left
bank of the Chagres River known as Penas Blancas Arriba, lying below a topo-
graphical contour line of 87 feet elevation above mean sea-level, together with a
right of way for the relocated Panama Railroad with telegraph and telephone
poles; the estate of Penas Blancas Arriba being part of the lands designated
.Vhorca Lagarto y Bohio Soldado as .shown colored in pink on the Harrison-
Arosemena map of 1862.
The tract herein conveyed is more approximately shown and described
colored in yellow on a map thereof marked "Schedule A" signed by the agent
above-named hereto attached and made a part of this deed. There is also con-
veyed as shown on said map colored in pink a tract above the contour of elevation
plus 87, which tract as so shown in pink is included in this conveyance and forms
a part of the total area conveyed by the terms of this deed, for the rea.son that
the said tract is essentially surrounded by the other lands conveyed lying below
the said contour of elevation plus 87.
It is understood tlint tht> Columbian Fruit Company may continue in the pos-
session of the said lands without payment of rental therefor until such time as
rhe .same are occupied or notice shall be given that possession thereof is required
liy tl'.e Isthmian Canal Commission.
To have and to hold the above designated and described lands together with all
rights, claims, lease-held interests, and demands of whatsoever nature apper-
taining thereto unto the said United States of America, its successors, or assigns
forever; the grantor does for itself, its successors, and assigns covenant and
afree to warrant and defend these lands into the United States of America, its
succes.sors and assigns against tbe lawful claims and demands of all persons
whomsoever, and the grantor does hereby likewise release and surrender any
and all claims for actual or consequential damages to the said lands which may
have heretofore been caused or claimed by reason of the action of the Isthmian
Canal Commission, the Panama Railroad Company, or any of their agents, .serv-
ants or employes.
Ix WiTNKss Whereof, The Colombian Fruit Ccmipany, Ltd., by R. Young, its
agent, has hereunder set its hand and seal this 27th day of March, 1909.
[s?:al]
(Sgd) R. Yung.
(Sgd) W. Andrews.
Signed, sealed and delivered in the presence of :
(Sgd)
Arthur Edwards.
united states of AMERICA, CANAL ZONE, THIRD JUDICIAL CIRCUIT
Personally appeared l)efore me this 27th day of March. 1909, R, Yung, to me
known by representation io ))e tlie person therein mentioned and who executed
140
the foregoing instrument for and as agent of the Colombian Fruit Company, Ltd.,
and aclvnowledged the same to he his free act and deed.
In Witness Whkkeof, I have hereunto set my hand and affixed my official seal,
this 27th day of March, 1900.
(Sgd.) Nelson R. Johnson,
Clerk of the Cireuit Court,
Third Judicial Circuit.
[seal]
Filed for record April 28th, 1909, at 4.37 P.M.
No fee.
Nelson R. Johnson,
Registrar.
Instrument No. 895
record of property of the canal zone
This quit claim deed made this 1st day of August A.D. 1914 by Seferino
Pacheco, hereinafter called the grantor, to the United States of America, here-
inafter called the grantees,
Witnesseth : That the grantor for and in consideration of the sum of Four
Hundred Dollars ($400.00) to him in hand paid, the receipt whereof is hereby
acknowledged, does hereby bargain, sell, remise, release and Quit-claim unto
the United States of America, their successors and assigns, all of hi.5 right, title,
interest, claim and demand whatsoever in and to all or any part of the lands
lying and being within the Canal Zone to the west of the Panama Canal, and
north of the Chagres River, together with all improvements located thereon.
To have and to hold the same unto the United States of America, their succes-
sors and assigns.
In Witness Whereof the grantor has hereunto set his hand and seal the day
and year first above written.
(Sgd.) Seferino ^X Pacheco [seal]
Signed, sealed and delivered in the presence of :
(Sgd.) R. S. Carlson.
Blas G. Perez.
united states of america district of the canal zone
Before me, Gerald D. Bliss, Notary Public in and for the Divi-sion of Cristobal,
Canal Zone, on this day personally ai)peared R. S. Carlson, known to me to be
the person whose name is subscribed as a witness to the foregoing instrument
and after being sworn l)y me deposes and says that he subscribed the same as
such witness at the request of Seferino Pacheco, the grantor named in the fore-
going instrument and that he saw the grantor execute the sums for the purposes
and consideration therein expressed.
Given under my hand and seal of office this 1st day of August, A.D. 1914.
(Sgd.) (Jerald D. Bliss,
Notarp Puhlic, Division of Cristobal,
Canal Zmie.
[seal]
Filed for record Aug. 6, 1914, at 8.20 a.m.
Instrument No. 931
This quit claim deed made this 17th day of October, A.D., 1914, by Magdalene
Marin, hereinafter called the grantor, to the United States of America, herein-
after called the grantee,
Witnesseth : That the grantor for and in consideration of the sum of Two
Thousand One Hundred Twenty-five and 00-lOOs ($2,125.00) Dollars, to him in
hand paid, the receipt whereof is hereby acknowledged, does hereby bargain.
1 His mark.
141
sell, remise, release and quit-claim unto the Untied vStates of America, their suc-
cessors and assij-iis. all of his rifilit. title, interest, claim and demand whatsoever
in and to all or an.v part of the island known as "Galeta", lying and being
within the Canal Zone, and to the east of the Panama Canal, together with all
improvements located thereon.
To have and to hold the same unto the United States of America, their suc-
cessors, and assigns.
In Witness Whereof the grantor has hereunto set his hand and seal the day
and year first above written.
( Sgd. ) Magdaleno :Marin [seal].
Signed, sealed and delivered in the presence of :
(Sgd.) R. S. Carlson.
R. H. Sartor.
VNITED STATES OF AMERICA DISTRICT OF THE CANAL ZONE
Before me, Gerald D. Bliss. Notary Public in and for the Division of Cri.stobal.
District of the Canal Zone, on this day personally appeared Magdaleno Marin,
proved to me on the oath of R. S. Carlson, a creditable witness, to be the person
whose name is subscribed to the foregoing instrumen.t. and he acknowledged
to me that he executed the same for the purposes and consideration therein
expressed.
Given under my hand and seal of office this 17th day of October, A.D. 1914.
(Sgd.) Gerald D. Bliss,
Xotary PuhUr. Division of Cristobal.
Cdniil Zone.
[Seal]
Filed for record Oct. 19. 1914. at 2 :21 p.m.
Instrument No. 1058
This quit claim deed made this 22d day of March, 1915 by Isabella Franco.
Nicola.'^a Franco, Juana Franco, Mercedes Melendes, Rayes Franco, Margarita
Franco, Jerminio Franco, Felicita Franco, Juan Franco, Feliciano Franco. Elvira
Franco, and Manuela Franco, hereinafter called the grantoi-, to the United
States of America, hereinafter called the grantees.
Witnesseth : That the grantors for and in consideration of the sum of .seven
hundred and twenty dollars ($720.90) to them in hand paid, the receipt whereof
is hereby acknowledged, do hereby bargain, sell, remise, release and quit claim
unto the grantees, their successors and assigns, all their right, title, interests,
claims and demands whatsoever in and to all or any part of Isla Qurita. lying
and being with the Canal Zone near the Pacific entrance to the Panama Canal,
a little to the northwest of Balboa, together with all improvements located
thereon.
To have and to hold the same unto the grantees, their successors and assigns.
In Witnes.s Whereof the grantors have hereunto set their hands and seals
the day and year first above written.
Signed, .sealed and delivered in the presence of: (sgd) R. S. Carlson, (sgd)
A. G. Dunham.
(sgd) Isabella (her mark) Franco,
Nicolasa Franco,
(sgd) Juana (her mark) Franco
(sgd) Mercedes Melendez
(sgd) Reyes (her mark) Franco
(sgd) Margarita (x) Franco
(sgd) Jerminio (his mark) Franco
(sgd) Felicita (her mark) Franco
(sgd) Juan Franco
(sgd) Feliciano Franco
(sgd) Elvira (her mark) Franco
(sgd) Manuela (her mark) Franco
{All names scaled by word -SEAL" icriften thereafter.
142
UNITED STATES OF AMEBICA, DISTRICT OF THE CANAL ZONE
Before me, H. R. Townsond, Notary Public in and for the Division of Balboa,
Canal Zone, on this day appeared Isabella PYanco. Nleolasa Franco, Juana
Franco, Mercedes Melendez, Reyes Franco, Margarita Franco, Jerniinio Franco,
Felicita Franco, Juan Franco, Feliciano Franco, P^lvira P'ranco, and Manuela
P'ranco, proven to me on the oath of R. S. Carlson, a credible witness, to be the
persons named in, and who executed the foregoing deed : pledged to nie that
they executed the same freely and voluntarily and for the purposes and con-
sideration therein expressed.
Given under my hand and seal of office this 22nd day of March, 1915.
Instrument No. 1066
record of property of the canal zone
This quit claim deed, made this 21st day of April, 1915, by Meruva Boufa, here-
inafter called the grantor, to the United States of America, hereinafter called the
grantees,
Witnesseth, that the grantor for and in con.sideration of the sum of P^'ive Hun-
dred Dollars, ($500.00), United States currency, to him in hand paid, receipt
whereof is hereby acknowledged, does hereby bargain, sell, remise, release
and quitclaim unto the grantees, their successors and assigns, all of his right,
title, interest, claim, and demand whatsoever in and to all or any part of that land
claimed by him situated in the Judicial Division of Cristobal, in the Canal Zone,
to-wit : — The tracts of land containing approximately fifteen acres and eighty
acres, respectively, of land, more particularly described as follows :
Situated about two and one-half miles east of the City of Colon, and is a part
of the large rectangular tract of land granted to the Panama Railroad Company
by the Republic of New Granada, now Colombia, as shown on the Harrison-
Alosemena map, near the village of Puerto Escondido, l)Ounded more ()r less
as follows :
On the north by the village of Puerto Escondido. on the east by the cocoa plan-
tations formerly ownied by P^'rancois Prima, on the south by the Majagual-Mt.
Hope trail, and on the west by the Rio Puerto Escondido; including all planta-
tions, houses, and other improvements situated upon said land ; and all rights,
claims and demands, of whatsoever nature, arising from, or connected with, said
property, all of which rights, claims and demands are hereby transferred, relin-
quished and assigned to the Government of the United States.
To have and to hold the same unto the United States of America, their suc-
cessors and assigns.
In Witness Whereof the grantor has hereunto set his hand and seal the day
and year first above written.
(Sgd. ) Meruva (his X mark) Boufa.
Signed, sealed and delivered in the presence of :
(Sgd.) R. S. Carlson.
V. G. DE Suze.
UNITED STATES OF AMERICA DISTRICT OF THE CANAL ZONE
Before me, W. B. Cheatham, an officer duly authorized to take acknowledge-
ments, on this day personally appeared Meruva Boufa proven to me on the
oath of V. G. de Suze. a credible witness, to be the i)erson named and who exe-
cuted the foregoing deed, and acknowledged to me that he executed the same
freely and voluntarily and for the purposes and considerations therein expressed.
In witness whereof T have hereunto set my hand and my seal of office this 21st
day of April, 1915.
(Sgd.) W. B. Cheatham,
Notary Public,
Division of Cristobal, Canal Zone.
[seal]
Filed for record April 23, 1915. at 8 a.m.
143
Instrument Xo. 1094
This deed made this 27th day of July. A.D. 1915. by I'edro Arias F, hereinafter
called the grantor, to the United States of America, hereinafter called the
grantees :
Witnesseth that the grantor, for and in consideration of the sum of Three
Thousand Two Hundred and Fifty Dollars, ($3,250.00) United States currency,
to him in hand paid, the receipt whereof is hereby acknowledged, has granted,
bargained, sold, transferred and conveyed, and does hereby grant, bargain, sell,
transfer and convey, unto the grantees, its successors and assigns forever, all of
his right, title, interest, claim and demand whatsoever, in and to the following
described property :
A one-story house of wood and zinc crayon No. 1008, measuring approximately
36 feet in length by 27 feet in width, situated in Pueblo Xuevo. Aiieon District.
Canal Zone, and on land bounded as follows : On the north by vacant land ; on
the east by vacant land and the fence along the right of way of the Panama
Railroad Company ; on the south by public street without name ; and on the
west by a one-story house, crayon No. 1009.
Also, a two-story house of wood and zinc, measuring approximately 25 feet in
width l)y 26 feet in length, crayon No. lOlO, situated in Puel)l() Xuevo. Ancon
District, Canal Zone, and on land bounded as follows : On the north by a two-
story house, crayon No. 1011 ; on the east by a one-story house crayon No. 1009 ;
on the south by a public street without name ; and on the west by a public street
without name.
Together with all rights, title and interest, of every kind, in and to the land
upon which the above-described houses are situated.
To have and to hold the same unto the United States of America, its successors
and assigns forever.
And the grantor does hereby covenant and agree to and with the grantees, their
successors and assigns, that he is the lawful owner, and well seized of the prop-
erty above conveyed, and that he has full right and lawful authority to sell and
convey the same ; that the same property is free from all liens, mortgages or
other encumbrances of whatever character, and that he will forever warrant and
defend the same against any person whomsoever, lawfully claiming the property
or any part thereof.
In Witness Whereof the grantor has heremito set his hand and seal, at
Ancon, Canal Zone, this 27th day of July.
(Sgd. ) Pedro Arias F.
[Seal]
Witness
(Sgd.) R. S. Carlson.
t^NITED STATES OF AMERICA CANAL ZONE
Before me, E. M. Goolsby. Notary Public in and for the Canal Zone, on this
day personally appeared Pedro Arias F. known to me to be the person whose
name is subscribed to the foregoing instrument, and he acknowledged to me that
he has executed the same for the purposes and consideration therein expressed.
Given under my hand and seal of office, this 27tb day of July, 19]."». at Ancon.
Canal Zone.
(Sgd.) Elbert M. Goolsby,
Notary Public.
[Seal]
Filed for record July 27, 1915, at 11 a.m.
144
Instrument No. 1088
This deed made this 24th day of June, A.D. 1915, by Paul Prosify, joined by his
wife Rosa de Prosky, hereinafter called the grantors, to the United States of
America, hereinafter called the grantees :
Witnesseth that the grantors, for and in consideration of the sum of Three'
Thousand Six Hundred Fifty Dollars, ($3,650.00). United States currency, to
them in hand paid, the. receipt whereof is hereby acknowledged, have granted,
bargained, sold, transferred and conveyed, and do hereby grant, bargain, sell,
transfer and convey, unto the United States of America, its successors and
assigns forever, all of their right, title, interest, claim and demand whatsoever,
in and to the following described property :
A two-story house, the first story being constructed of concrete, and the second
story of wood and zinc, in the Ancon District of Pueblo Xuero. Canal Zone, which
house measures approximately thirty-two feet in width by thirty-seven feet in
length, numbered by crayon, 1003, and being situated on land bounded as follows :
On the north by a two-story, wood and zinc building belonging to the American
Trade Developing Company ; on the east by First Street and a fence separating
the street from the Railroad Tracks; on the south by a two-story zinc and wood
house owned by Ricardo de la Ossa ; and on the west by Second Street.
Together wuth all rights, title and interest, of every kind, in and to the land
upon which the above-described house is situated.
To have and to hold the same unto the United States of America, its successors
and assigns forever.
And the grantors do hereby covenant and agree to and with the grantees, their
successors and assigns, that they are the lawful owners, and well seized of the
property above conveyed, and that they have full right and lawful authority to
sell and convey the same ; that the said property is free from all liens, mortgages
or other encumbrances of whatever character, and that they will forever war-
rant and defend the same against any person whomsoever, lawfully claiming the
said property or any part thereof.
In Witness Whereof the grantors have hereunto set their hands and seals, at
Ancon, Canal Zone, this 24th day of June, 1915.
(Sgd.) Paul Prosky [seal]
Rosa de Prosky [seal]
Witnesses :
(Sgd.) R. S. Hays.
G. D. Baker.
UNITED STATES OF AMERICA, CANAL ZONE
Before me, E. M. Goolsby, Notary Public in and for the Canal Zone, on this
day personally appeared Paul Prosky, and Rosa de Prosky, his wife, both
proved to me on the oath of G. D. Baker to be the persons whose names are
subscribed to the foregoing instrument, and they severally acknowledged to me
that they have executed the same for the purposes and consideration therein
expressed ; and the said Rosa de Prosky, being examined by me privily and
apart from her husband, and having had said instrument fully explained to her
by me, declared that she had willingly signed the same for the purposes and
consideration therein expressed, without fear of compulsion on the part of her
said husband, and that she did not wish to retract it.
Given under my hand and seal of oflSee, this twenty-fourth day of June, 1915,
at Ancon, Canal Zone.
(Sgd.) Elbert M. Goolsby.
Notary Public.
[seal]
Filed for record June 24, 1915, at 4.10 p.m.
145
ACT OF CONGRESS AUTHORIZING CONVEYANCE
TO MASONS
CHAP. 239. — An Act To remove a certain tract or lots of land in Cristobal,
Canal Zone, from the operation and effect of the Executive order of the Presi-
dent of December 5, 1912, pursuant to the Act of Congress of August 24, 1912
(Thirty-seventh Statutes, chapter 390, page 565)
Be it enacted hy the Senate and House of Representatives of the
United States of America in Congress assembled^ That the following
tract of land situated within the Canal Zone, and more particularly
described as lots numbered six hundred and forty-one, six hundred and
forty-three, six hundred and forty-five, and six hundred and forty-
seven in the town of Cristobal, Canal Zone, the same being bounded
on the north by Eleventh Street, on the east by Bolivar Street, on the
south by lot numbered six hundred and forty-nine, and on the west
by a vacant lot, the said lots or tract of land having an extension from
north to south of one hundred and twenty feet and from east to west
of one hundred feet, and measuring in superficial area twelve thou-
sand square feet, be, and the same is hereby, withdrawn from the
operation and effect of the Act of Congress approved August 24, 1912,
known as tlip Pannnia Canal Act (Thirty-seventh Statutes, chapter
390, page 565), and the subsequent Executive order of the President,
issued pursuant to the said Act of Congress under date of Decem-
ber 5, 1912.
Ssc. 2. The Panama Railroad Company is hereby authorized to
sell, transfer, and convey said lots or tracts of land with all improve-
ments thereon to any other person or persons or association of persons
and retain the consideration therefor for its own use.
Approved, June 5, 1920.
THE PANAMA CANAL
History Prior to 1950
Treaties irith Panama
The Ignited vStates nnclertook the constniction of the Panama Canal after
conclndins a treaty with Panama iu 1903/ under which, among other provisions:
1. I'anania granted to the T'nited States the use, occupation and control of the
Canal Zone for the construction, maintenance, operalion, sanitation and protec-
tion of the Canal f
2. Panama granted to the United States all the rights, power and authority
within the Canal Zone "which the United States would possess and exorcise if
it were tlie sovereign of the territory * * * the entire exclusion of the exercise
by the Republic of Panama of any such rights, power, or authority." ^
3. The United States agreed to pay the Republic of Panama SIO million in cash
and an annuity of $250,000.*
Subsequent treaties between the United States and Panama were concluded
in 1936 " and 1055." The 1936 treaty, among other provisions, increased the annuity
payalile to Panama from $250,000 to $430,000' and placed restrictions on resi-
dence, importations), and commercial activity in the Canal Zone.* The 1955 treaty,
among other provisions :
1. Further increased the annuity to $1,930,000; -
2. Provided for return to Panama of improved and iiniinproved real estate
owned by the United States in Panama : ^°
3. Excluded Panamanian employees residing in Panama from the priv-
ilege of making purchases in Canal Zone stores ; "
4. Granted Panama the right to tax Panamanians employed in the Canal
Zone ; ^'
5. Provided for equality of opportunity and treatment of Panamanian
employees ; ^' and
6. Provided for construction of a bridge across the Canal at the Pacific
entrance to the Canal.^'
The Panama Canl
Construction of the Canal was i>erformed by the Isthmian Canal Commission
luader the provisions of the Spooner Act of Juno 28, 1902.'^ As construction ap-
proached completion, the President issued an Executive order providing a perma-
nent organization for the completiorr, maintenance, operation, government and
sanitation of the Panama Canal and its adjuncts and the govenrment of the
Canal Zone ^" pursuant to authority provided by the Panama Canal Act of
August 24, 1912.'" The effect of the Panama Canal Act and the Executive order
was to establish The Panama Canal as an independent government agency for
(1) operation and maintenance of the waterway, and (2) civil government of
the Camil Zone. The pertinent provisions of the Panama Canal Act were later
incorporated in the 1934 edition of the Canal Zone Code.''*
1 TS 431.
2 Art. II.
3 Art. III.
^Art. XIV.
5TS 945, 5.3 Stat. 1807.
6TLAS 3297.
■'Art. VII.
8 Art. III.
"Art. I.
10 Art. V.
" Art. XII.
i-'Art. II.
1'' Memorandum of Understandings Reached accompanying treaty, par. 1.
" Memorandum of Understanding Reached accompanying treaty, par. 5.
1^32 Stat. 481.
iGE.O. 1885 of January 27, 1914.
" 37 Stat. 560.
"2 C.S. Code (1934 ed.) 5.
(147)
148
The Panama Railroad Company
During the existence of The Panama Canal agency, many of tlie qnasi-lm«ine.ss
enterprises relating to the Canal operation, (e.g., the railroad, steamship line,
commissaries, etc.) were conducted l)y tlie I'anama Railroad Company. The
Company was originally created in 1849 Tinder rhe laws of the State of New
York as a private corporation for the purpose of constructing and maintaining a
railroad across the Isthmu.s of Panama. Most of the shares of the Company's
capital stock were acquired in 18S1 by the French in conjunction with their
attempt to construct a fanal. The Isthmian Canal Commission accpiired the
shares owned l)y the French Can.al Company for the United States as part of
the P'rench assets purchased in li)04, and in 1!!0.") purcha.sed the remaining out-
standing .shares from private owners. Thus, since lit05 the Company has been
wholly owned by the United States Government.
In 11)4.", Congress enacted the Government Corporation Control Act ^" which
l)roliibited the continued existence of any wholly owned government corporation
created by or under the laws of any state. Accordingly, the I'anama Railroad Com-
pany was reincorporated under a federal charter with authority to continue its
operations as before.""
REORGANIZATION ACT OF 1950
Under legislation enacted in 1950, a basic change in the organizational struc-
ture of the canal enterprise liecame effective July 1, 19'."il.'^ One purpo.se of the
reorganization was to separate the business oi)erations of the canal enterprise,
including operation of the waterway, from those functions normally associated
with civil government. Thus, all the functions of the agency previously known as
The Panama Canal except those relating to civil government, health, and .sanita-
tion were transferred to the i'anama Railroad Company which was renamed the
Panama Canal Company. The Panama Canal agency retained its governmental
functions and was renamed the Canal Zone Government.
PRESENT ORGANIZATION
The basic provisions of the 1950 reorganization legislation were subsequently
incorporated into the 1962 edition of the Canal Zone Code." Under the statutory
scheme, outlined below, the Panama Canal Com])any and the Canal Zone Govern-
ment function as an integrated enterprise, although each is an independent agency
of the United States.''
Panama Canal Company
The Panama Canal Company is described in the law as a body corporate and
an agency of the United States for the purpose of maintaining and operating the
Panama Canal and conducting business enterprises incident thereto and incident
to the civil government of the Canal Zone."'
The United States, in its capacity as owner of the corporation, is represented by
the President or such officer as he designates, called the "stockholder.""" The
President has designated the Secretary of the Army to act as stockholder.-'"' The
Executive order delegating this authority to the Secretary of the Army specifies
that in performing this function, the Secretary shall act as the direct representa-
tive of the President and not in his capacity as bead of the Department of the
Arm.v."'
Management of the Company is vested in a Board of Directors, consisting of
not less than nine nor more than thirteen members, including the Governor of the
Canal Zone and the stockholder, if he elects to serve.^ The other members of the
P>oard are appointed by and serve at the p'easure of the stockholders.-" The
directors receive no salary but are jiaid a per diem allowance and transportation
expenses for travel in connection with their services to the Company.
".•?! U.S.C. S41-Sfi9.
=0 Art of .Tnnp 20. in4S. 62 Stat. 1075.
=1 Art of Spptomber 20, in.50, 04 Stat. 1041.
- 70.V Stat. 1. Pt spn.
-■'■ Cf. laiisrnaep of 2 C.Z. Codp 02ff) concprnins tlip fiscal nianacPinpnt of tlip two nspiirips.
-'<2 C.Z. Co'lp 01.
s"' 2 C.Z. Codp 02.
=" K.O. ll.'^O.') of Spptember 12, 1966, 3.5 CFR .3.2(a).
=• .■^.-) CFR .3.2(h).
^ 2 C.Z. Code 63.
=!• Ibid.
149
The powers of the Company are enumerated in the charter.^ In general the prin-
cipal activities of the Company are (1) operulions directly involved in the move-
ment of ships through the Canal and (2) supixjrting services. The latter include
vessel repairs, harbor terminals, a railroad across the Isthmus, a supply ship
operating between the United States and the Canal Zone motor transportation
facilities, storehouse, an electric power system, a communications system, a water
system, and service activities essential for meeting the needs of employees, such
as Ihing quarters, retail stores and restaurant.*. The results of operation of each
of the units of the Company is shown in detail in the Company's annual reports.
Under its charter the Company is required to be self-sustaining although
appropriations are authorized to cover any operating los.ses^^ or for capital
improvcviients.^" Appropriations for operating losses are required to be repaid.
Since the 1950 reorganization the Company has not received any appropriations.
All operating exix^nses and capital costs have been met from revenues.
Tlie Company is also required to reimbur.se the Treasury for interest on the
net direct investment of the United States in the corporation at rates fixed
annually by the Secretary of the Ti-easury,^^ for the annuity of $430,000 paid
to Panama under the 1903 treaty with Panama as amended by the 1936 treity,''*
and for the net costs of operation of the agency known as the Canal Zone
Government.^
Tolls for the use of the Canal are established by the Company, subject to ap-
proval by the President of the United Stntes.'^'^ The law requires that tolls be
maintained at rates calculated to recover all costs of maintenance and operation
of the Canal, including interest, depreciation and an appropriate .share of the
net cost of the Canal Zone Government.'*' The remaining financial obhgations
of the Company are met through revenues derived from operations of the sup-
porting activities.
The Board of Directors is required to review annually its working capital
requirements together with foreseeable requirements for plant replacement and
expansion and to pay any amounts in excess thereof into the Treasury in reduc-
tion of the Government's investment in the Company.^' Since 1950 the Company
has paid $30 million into the Treasury for this purpose.
Canal Zone Government
The Canal Zone Government Is an independent agency of the United States
charged with the performance of the various duties connected with the civil gov-
ernment of the Canal Zone.^° The Canal Zone Government is administered by a
Governor of the Canal Zone under the supervision of the President or such
ofl5cer of the United States as may be designated by him.^° The President has
designated the Secretary of the Army for this purpose ^^ with the same stipu-
lation as in the delegation to act as the stockholder of the Panama Canal Com-
pany that in performing these functions, the Secretary acts as the direct repre-
sentative of the Pi-esident and not in his capacity as head of the Department
of the Army.*^
The Governor of the Canal Zone is appointed by the President by and with the
advice and consent of the Senate for a term of four years.^^ As i>reviously noted,
the Governor is e.r officio the President of the Panama Canal Company and a
member of the Company's Board of Directors.
The functions of the Canal Zone Government are those normally associated
with civil s-ovemnient. They include police and fire protection. oi>eration of a
school system, and provision of courts, medical facilities, sanitation, roads, and
customs and immigration services. The Canal Zone Governnient operates on ap-
propriations received from Congress each year. Any revenues received by the
™2 C.Z. Oofle 6.5. '66.
^2 C.Z. CorlP 72.
32 2 C.Z. Codp 62.
33 2 C.Z. Code 62(a). .
34 2 C.Z. Code 62 (p).
35Thid.
3«2 C Z. Code 411.
■■"2 C.Z. Code 412.
38 2 C.Z. Code 70.
39 2 C.Z. Code 31.
^ Ihid.
«B O 11. ^^05 of September 12, 1966, .35 CFR 3.2(a).
«.3;j CFR 3.2(h).
*3 2 C.Z. Code 32.
150
Canal Zone Government during the year are returned to the Treasury of the
United States and are deducted from the gross appropriations for that year. The
net oost of the Canal Zone Government, after deducting these revenues, is then
reimbursed by the Panama Canal Company to the Treasury of the United States.
The results of operation of the various elements of the Canal Zone Government
are detailed in the annual reports of the agency.
o
BOSTON PUBLIC LIBRARY
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